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Valid thru 3/23/2025
Certification #CE_130097
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Item Number: 13.
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Item Number: 13.
SR-24-127
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: May 21, 2024
Department: City Manager
Prepared by: Daniel Porras, Assistant City Manager
Subject: First Amendment to Professional Services Agreement with NV5 Inc for Engineering Plan Check Services
RECOMMENDATION:
Authorize the City Manager to negotiate and execute the First Amendment to the Professional Services Agreement for engineering plan check services between the City and NV5 Incorporated, increasing the contract amount to an amount not to exceed $180,000 for fiscal year 2023/2024, $120,000 for fiscal year 2024/2025, and $120,000 for fiscal year 2025/2026.
BACKGROUND:
The City currently contracts with NV5 Inc. for as-needed engineering plan check services. Those services include plan checking grading plans, water quality management plans, hydrology reports, street improvement plans, parcel mergers, lot line adjustments, parcel maps, and tract maps. The City collects plan check fees from developers for all engineering plan checks, and utilizes those funds to offset the costs of NV5 plan check services. NV5 Inc. completes plan checks within a 2 week period, and the fees for the services are collected from the applicant. The plan check services are only as-needed.
On November 7, 2023, the City Council approved the Professional Service Agreement with NV5, increasing the contract amount from $20,000 to $120,000 to cover additional plan check expenses that were expected to come in with large projects such as Project Viento (100 Acres).
DISCUSSION:
Since then the City has received additional plan check submittals from other large projects such as Desert Gateway (65 Acres), which now require an additional increase in contract amount to cover those costs. The City is currently recruiting for the Associate Engineer position, in order to continue to move projects forward through the plan check process during the recruiting process, the demand for outsourcing engineering plan check services has increased, therefore an increase in the overall contract amount is necessary.
The proposed First Amendment to the Professional Services Agreement will make the following changes:
1) Extend the Term of the agreement until June 30th 2026; 2) Increase the total contract amount for fiscal year 2023-2024 from $120,000 to $180,000; Item Number: 14.
SR-24-127
3) Set the total contract amount for fiscal year 2024-2025 at $120,000; and 4) Set the total contract amount for fiscal year 2025-2026 at $120,000 FISCAL IMPACT:
Plan check services are funded by plan check fees paid at the time of submitting plans for permits.
Any increase in the cost of plan check services will be covered by an increase in plan check fees.
ATTACHMENTS:
1) First Amendment to Professional Services Agreement - NV5 - Plan Check Services Item Number: 14.
FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
BY AND BETWEEN
THE CITY OF DESERT HOT SPRINGS
AND
NV5 INC.
This First Amendment (hereinafter, the “First Amendment”), is made and entered into as of the 21st day of May, 2024, by and between the City of Desert Hot Springs, hereinafter referred to as the "City,” and NV5 Inc., a Consultant, hereinafter referred to as "Consultant with the City and Consultant sometimes together referred to herein as the “Parties.”
RECITALS
WHEREAS, the Parties previously entered into that certain Professional Services Agreement By and Between the City of Desert Hot Springs and NV5 Inc, a corporation, dated 2nd day of November, 2023 (hereinafter, the “Agreement”), for Consultant to provide the City with Plan Check Services as directed by the City on an as needed basis in the amount not to exceed $120,000; and
WHEREAS, the Parties desire to amend the Agreement to increase the compensation and term provisions set forth in the Agreement.
NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration the receipt and adequacy of which is hereby acknowledged, the Parties hereby agree as follows:
AGREEMENT
Section 1. RECITALS
The Recitals set forth above are hereby incorporated into this First Amendment by this reference, as though fully set forth herein.
Section 2. SECTION 3 - TERM
Section 3 of the Agreement is hereby amended to read as follows:
Consultant shall perform those services set forth in the Scope of Services during the term of this Agreement which shall be effective as of November 2, 2023, and expire on June 30, 2026.
Section 3. SECTION 4 - COMPENSATION
Section 4 of the Agreement is hereby revised to read as follows:
Item Number: 14.
The City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as compensation for the faithful performance of said Services and duties, a total amount not to exceed One Hundred Eighty Thousand and Zero Cents ($180,000.00) for Fiscal Year 2023-2024, One Hundred Twenty Thousand and Zero Cents ($120,000.00) for Fiscal Year 2024-2025, and One Hundred Twenty Thousand and Zero Cents ($120,000.00) for Fiscal Year 2025-2026.
Section 4. ATTORNEY'S FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this First Amendment or as a result of any alleged breach of any provision of this First Amendment, the prevailing party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorney's fees, and any judgment or decree rendered in such a proceeding shall include an award thereof.
Section 5. COUNTERPARTS
This First Amendment may be executed in several counterparts, each of which shall be deemed to be an original and shall constitute one and the same instrument and shall become binding upon the Parties when at least a copy hereof shall have been signed by the Parties hereto.
Section 6. CONFLICTS
In the event there exist any conflicts between the terms of this First Amendment and the original Agreement, the terms of this First Amendment shall be superseding.
Section 7. REMAINING PROVISIONS
All other remaining terms and conditions of the Agreement shall remain unchanged.
[THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]
Item Number: 14.
IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed as of the date first written above.
CITY OF DESERT HOT SPRINGS
______________________________
Frank Luckino, City Manager
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_____________________________
Tuan-Anh Vu , City Attorney
NV5 INC
________________________________
Jeffery M. Cooper, Senior Vice
President
Item Number: 14.
SR-24-124
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: May 21, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Mayor's Appointments to Various Intergovernmental and Regional Boards and Committees: Coachella Valley Animal Campus Commission RECOMMENDATION:
Ratify Mayor Matas' appointment of Councilmember Gardner (member) and Mayor Matas (alternate) to the Coachella Valley Animal Campus Commission.
BACKGROUND:
Pursuant to Section 6.2 of the City Council's "Meeting Guidelines and Procedures,"
6.2 Council Member Appointments to Boards, Committees, and Commissions The Mayor shall appoint Council Members to all City and intergovernmental Boards, Committees, and Commissions. The majority of the City Council may ratify the Mayor's appointments at a regularly scheduled City Council meeting.
DISCUSSION:
Mayor Matas proposes the appointment of Councilmember Gardner (member) and Mayor Matas (alternate) to the Coachella Valley Animal Campus Commission.
FISCAL IMPACT:
There is no fiscal impact as a result of this action.
ATTACHMENTS:
City Council Appointments 2023-2024
Item Number: 15.
2023-2024 CITY COUNCIL APPOINTMENTS
OFFICE OF THE CITY CLERK
City of Desert Hot Springs
COACHELLA VALLEY ASSOCIATION OF GOVERNMENTS (CVAG) Member Alternate Executive Committee Matas Betts
Energy and Environmental Resources Committee Betts Gardner Homelessness Committee Pye Nuñez
Public Safety Committee Nuñez Pye
Transportation Committee Matas Betts
Coachella Valley Conservation Commission Gardner Matas
REGIONAL BOARDS AND COMMITTEES Member Alternate
Coachella Valley Economic Partnership (CVEP) Board of Directors Nuñez Betts Coachella Valley Mountains Conservancy (State Agency) Gardner Matas Eastern Riverside County Interoperable Communications Authority (ERICA) Matas Gardner Greater Palm Springs Convention and Visitors Bureau (CVB) Gardner Nuñez Palm Springs Airport Commission
(Position is “nominated” by the Desert Hot Springs City Council; and “appointed” by the Palm Springs City Council) Pye N/A Riverside County Transportation Commission (RCTC) Matas Betts SunLine Transit Betts Matas
Coachella Valley Animal Campus Commission Gardner Matas CV Mosquito & Vector Control Board Gardner
Riverside County Airport Land Use Commission
(Appointed by Riverside County City Selection Committee) Betts CAL-ID Board Matas
LIAISON POSITIONS Liaisons
Mission Springs Water District Pye Matas
Hoteliers Association Gardner Betts
Chamber of Commerce Nuñez Matas
Palm Springs Unified School District Matas Nuñez
Desert Health Care District Matas Pye
Cabot’s Museum Foundation Betts Gardner
Historical Society Gardner Pye
League of California Cities Gardner Betts
SCAG (Southern CA Association of Governments) Member
Transportation Committee Betts
CITY COUNCIL SUB-COMMITTEES Chair Co-Chair
Policy Rules and Regulations Gardner Pye
Item Number: 15.
MEETING SCHEDULE
2023-2024
MONDAYS Board, Commission or Committee Time Member Alternate 2nd Monday CVAG Public Safety
CVAG Room 119 9:00 a.m. Nuñez Pye
CV Mountains Conservancy
CVAG, Room 115 (meets every other month) 11:00 a.m. Gardner Matas CVAG Transportation
CVAG Room 119 11:00 a.m. Matas Betts
3rd Monday MSWD Board Meeting (Liaison)
(Study Sessions are Thursday prior to the 3rd
Monday)
3:00 p.m. Pye/Matas
Last Monday CVAG Executive Committee
CVAG Room 119 4:30 p.m. Matas Betts
CVAG General Assembly (June only)
TBD 6:00 p.m. All
2023-2024
TUESDAYS Board, Commission or Committee Time Member Alternate 1st Tuesday City Council Regular Meeting
City Hall – Council Chamber 6:00 p.m. All
2nd Tuesday Coachella Valley Mosquito & Vector
Control District
43-420 Trader Place, Indio
6:00 p.m.
Gary Gardner
First appointed on January 15, 2019
Term expires January 15, 2025
3rd Tuesday City Council Regular Meeting
City Hall – Council Chamber 6:00 p.m. All
2023-2024
WEDNESDAYS Board, Commission or Committee Time Member Alternate 2nd Wednesday Riverside County Transportation
Commission (RCTC)
4080 Lemon Street, Riverside, First Floor
9:30 a.m. Matas Betts
Palm Springs Airport Commission
Palm Springs Airport Conference Room 8:00 a.m. Pye N/A
3rd Wednesday CVAG Homelessness Committee
CVAG, Room 119 10:00 a.m. Pye Nuñez
CVEP Board of Directors
(Meeting locations change monthly) 8:00 a.m. Nuñez Betts 4th Wednesday Sunline Transit Authority
Kelly Board Room 12:00 p.m. Betts Matas
2023-2024
THURSDAYS Board, Commission or Committee Time Member Alternate 1st Thursday Historical Society Liaison 7:00 a.m. Gardner / Pye Item Number: 15.
Animal Campus
Coachella Valley Animal Campus
72050 Pet Land Place, Thousand Palms
9:30 a.m.
Meets
quarterly
(every three
months) on
the first
Thursday
Gardner Matas
2nd Thursday CVEP Legislative Committee
CVAG, Room 119 7:30 a.m. Nuñez Betts
CVAG Coachella Valley Conservation
Commission 11:00 am Gardner Matas
CVAG Energy & Environmental Resources
CVAG, Room 119 12:00 p.m. Betts Gardner
2023-2024
FRIDAYS Board, Commission or Committee Time Member Alternate 3rd Friday Visit Greater Palm Springs
CVB Boardroom 70-100 Hwy. 111 8:00 a.m. Gardner Nuñez
2023-2024
OTHER Board, Commission or Committee Time Member Alternate ERICA Board
(Eastern Riverside Interoperable
Communications Authority)
Cathedral City
9:00 a.m. Matas Gardner
Hoteliers Association Liaison
TBD 12:00 p.m. Gardner / Betts
Item Number: 15.
SR-24-129
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: May 21, 2024
Department: City Manager
Prepared by: Frank Luckino, City Manager
Subject: First Amendment and Restated Exclusive Franchise Agreement RECOMMENDATION:
Approve the First Amendment and Restated Exclusive Franchise Agreement with Desert Valley Disposal (DVD).
BACKGROUND:
Desert Valley Disposal (DVD) has been the City's Waste Hauler since 1978. The partnership with DVD has been a good relationship and service to the City and its residents. Since then, the franchise agreement and services have evolved through various contract iterations, renewals, and amendments. Among some, but not limited to these services are: Residential and Commercial trash pickup Illegal Dumping abatement, Bulky Item pickups, and the impetus of this new amendment, SB1383 (organic diversion from landfills).
DISCUSSION:
The regulations promulgated by CalRecycle to implement SB1383 (Organic Diversion from landfills) requires the City to provide organic waste collection services to reduce the amount of organic waste, which includes food scraps and landscaping debris, disposed at landfills. This service was implemented without this agreement on January 1, 2023 under a verbal agreement, however CalRecycle requires it to be part of the franchise agreement. The SB 1383 regulations took effect on January 1, 2022, however many cities struggled to implement this new service on that date. The following are the amendments to the agreement in summary:
1) Implementation SB 1383 and the corresponding rates to the ratepayers; the Scope of Services are on Attachment C;
2) Term is 15 years, expiring June 30, 2039;
3) However, each year the City can receive a "reinvestment payment" to extend the agreement one year to always keep the agreement 15 years out;
4) The reinvestment payment is $200,000 and will be adjusted each year by inflation; first payment is scheduled for July 1, 2025; and
Item Number: 16.
SR-24-129
5) For the upcoming Fiscal Year, July 1, 2024 - June 30, 2025, DVD is going to absorb the cost of the debris abatement program.
FISCAL IMPACT:
The City will receive the following with the Franchise Agreement:
1) Contracting Fee - $125,000 for processing this amendment; and 2) Potentially the reinvestment payment of $200,000 plus inflation 3. And annual Franchise Revenue of approximately $200,000
OPTIONAL:
Add/Change/Delete deal points within the franchise agreement.
ATTACHMENTS:
DVD Franchise Agreement
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement i
FIRST AMENDED AND RESTATED
EXCLUSIVE FRANCHISE AGREEMENT
between the
CITY OF DESERT HOT SPRINGS
and
DESERT VALLEY DISPOSAL, INC,
for
SOLID WASTE MANAGEMENT SERVICES
Effective
July 1, 2024
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement ii
TABLE OF CONTENTS
RECITALS...........................................................................................................................................1 ARTICLE 1. DEFINITIONS....................................................................................................................3
1.1 DEFINITIONS............................................................................................................................. 3
1.2 STATUTORYDEFINITIONS .......................................................................................................... 3 ARTICLE 2. REPRESENTATION AND WARRANTIES OF CONTRACTOR ....................................................3
2.1 STATUS ..................................................................................................................................... 3
2.2 CORPORATE AUTHORIZATION ................................................................................................... 3
2.3 NO APPROVALS REQUIRED........................................................................................................ 4
2.4 NO CONFLICT WITH APPLICABLE LAW OR OTHERDOCUMENTS.................................................. 4
2.5 NO LITIGATION .......................................................................................................................... 4
2.6 ABILITY TO PERFORM................................................................................................................. 4
2.7 DUEDILIGENCE......................................................................................................................... 4 ARTICLE 3. REPRESENTATIONS AND WARRANTIES OF CITY.................................................................5
3.1 STATUS ..................................................................................................................................... 5
3.2 MUNICIPAL AUTHORIZATION ..................................................................................................... 5
3.3 NO CONFLICT ........................................................................................................................... 5
3.4 NO LITIGATION .......................................................................................................................... 5
3.5 NO WARRANT REGARDING WASTECHARACTERIZATION............................................................. 5
3.6 NO OTHER AGREEMENTS OR PERMIT ......................................................................................... 6 ARTICLE 4. TERM OF AGREEMENT.......................................................................................................6
4.1 EFFECTIVEDATE........................................................................................................................ 6
4.2 TERM......................................................................................................................................... 6
4.3 ANNUAL EXTENSION OF TERM................................................................................................... 6
4.3.1 Termination of Annual Extension .........................................................................................6
4.3.2 Reinstatement of Automatic Annual Extension.....................................................................6
4.4 OTHER RENEWAL OR EXTENSION............................................................................................... 7
4.5 PROCESSING FACILITY(IES) ....................................................................................................... 7
4.5.1 General..............................................................................................................................7
4.5.2 New Agreement..................................................................................................................7 ARTICLE 5. SCOPE OF AGREEMENT ................................................................................................7
5.1 GRANT OF FRANCHISE............................................................................................................... 7
5.2 LIMITATIONS ............................................................................................................................. 8
5.2.1 Sale or Donation of Recyclable Material or Organic Waste....................................................8
5.2.2 Self-Hauled Recyclable Material or Organic Waste...............................................................8
5.2.3 Beverage Containers ..........................................................................................................8
5.2.4 Incidental Removal of Green Waste.....................................................................................8
5.2.5 Construction, Demolition, and Inert Debris..........................................................................8
5.2.6 Edible Food........................................................................................................................9
5.2.7 Food Scraps.......................................................................................................................9 Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
iii
5.2.8 Animal Waste.....................................................................................................................9
5.2.9 Sewage Treatment By-Products ..........................................................................................9
5.2.10 Street Sweepings................................................................................................................9
5.2.11 Hazardous Materials ..........................................................................................................9
5.2.12 CITY Operations .................................................................................................................9
5.2.13 Other Jurisdictions .............................................................................................................9
5.2.14 Existing Solid Waste Enterprises........................................................................................10
5.2.15 Other Limitations..............................................................................................................10
5.3 FRANCHISE AREA .................................................................................................................... 10
5.4 ANNEXATION........................................................................................................................... 10 ARTICLE 6. COLLECTION SERVICES..................................................................................................10
6.1 GENERAL ................................................................................................................................ 10
6.2 COLLECTIONS......................................................................................................................... 11
6.3 NEWLY PAVEDSTREETS ANDROADS........................................................................................ 11
6.4 SPECIAL SERVICES .................................................................................................................. 11
6.5 LITTERMITIGATIONMEASURES ................................................................................................ 11
6.5.1 Public Education ..............................................................................................................12
6.5.2 Collection Vehicle Design.................................................................................................12
6.6 AUTHORIZEDRECYCLING AGENT............................................................................................. 12
6.7 DISABLEDPERSONS................................................................................................................ 12
6.8 COLLECTION FROMCITY FACILITIES ........................................................................................ 12 ARTICLE 7. DISPOSAL AND PROCESSING .........................................................................................12
7.1 DESIGNATEDFACILITIES.......................................................................................................... 12 ARTICLE 8. OTHER SERVICES ...........................................................................................................13
8.1 CUSTOMER BILLING ................................................................................................................ 13
8.1.1 Residential Direct Billing...................................................................................................13
8.1.2 County Tax Roll Billing ......................................................................................................13
8.1.3 Commercial Bin and Industrial Direct Billing ......................................................................13
8.1.4 Temporary Service Billings ................................................................................................13
8.1.5 Service to Delinquent Accounts ........................................................................................13
8.1.6 Collection of Payment from Delinquent Accounts. .............................................................13
8.2 CUSTOMER SERVICE ............................................................................................................... 13
8.3 WASTEDIVERSION .................................................................................................................. 14
8.3.1 Preferred C&D Waste Hauler ............................................................................................14
8.3.2 Liaison and Reporting .......................................................................................................14
8.3.3 Waste Audits....................................................................................................................14 ARTICLE 9. OPERATING REQUIREMENTS......................................................................................14
9.1 COLLECTION HOURS ANDSCHEDULES ................................................................................... 14
9.1.1 Residential Collection ......................................................................................................14
9.1.2 Commercial and Industrial Collection ...............................................................................15 Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
iv
9.1.3 Holidays ..........................................................................................................................15
9.2 COLLECTION STANDARDS....................................................................................................... 15
9.2.1 General............................................................................................................................15
9.2.2 Litter................................................................................................................................15
9.2.3 Private Property................................................................................................................15
9.2.4 Commercial Bins and Residential Containers ....................................................................15
9.2.5 Pavement ........................................................................................................................16
9.2.6 Noise...............................................................................................................................16
9.3 EXCEPTIONS TO COLLECTION STANDARDS.............................................................................. 16
9.3.1 Un-Contained Materials or Overloaded Containers ............................................................16
9.3.2 Contaminated Recyclables...............................................................................................16
9.3.3 Inaccessible Containers Accessible..................................................................................16
9.3.4 Unsafe Conditions............................................................................................................16
9.3.5 Hazardous Waste or Unsafe Materials...............................................................................16
9.3.6 Excess Amounts...............................................................................................................16
9.4 CONTRACTOR’S RULES ANDREGULATIONS............................................................................. 17
9.5 CONTRACTOR FACILITIES........................................................................................................ 17
9.6 VEHICLES................................................................................................................................ 17
9.6.1 Vehicle Identification........................................................................................................17
9.6.2 Vehicle Storage ................................................................................................................17
9.7 CONTAINERS .......................................................................................................................... 17
9.7.1 Container Maintenance ....................................................................................................17
9.8 PERSONNEL............................................................................................................................ 18
9.8.1 Uniforms..........................................................................................................................18
9.8.2 Safety Training..................................................................................................................18
9.8.3 No Gratuities....................................................................................................................18
9.9 COMMUNICATION WITH CITY .................................................................................................. 18 ARTICLE 10. RECORD KEEPING AND REPORTING ..............................................................................18
10.1 GENERAL RECORDKEEPING PROVISIONS................................................................................ 18
10.2 STATEMENT OF GROSS BILLINGS ............................................................................................. 19
10.3 INSPECTION OFCONTRACTOR'S ACCOUNTS ANDRECORDS ................................................... 19
10.4 COST OF AUDIT ....................................................................................................................... 19
10.5 PAYMENT ANDREFUNDS ......................................................................................................... 19
10.6 ANNUAL REPORT OF OPERATIONS........................................................................................... 19 ARTICLE 11. CONTRACTOR PAYMENTS.............................................................................................20
11.1 CONTRACTING FEE.................................................................................................................. 20
11.2 DEBRIS ABATEMENT PROGRAMCOST WAIVER.......................................................................... 20
11.3 RE-INVESTMENT PAYMENT....................................................................................................... 20
11.3.1 Re-Investment Payment ...................................................................................................20
11.3.2 Alternative Re-Investment Payment...................................................................................20
11.3.3 City Manager Selection.....................................................................................................21 Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
v
11.4 FRANCHISE FEE....................................................................................................................... 21
11.4.1 Residential Franchise Fee.................................................................................................21
11.4.2 Commercial Franchise Fee...............................................................................................21
11.4.3 Roll-Off and Miscellaneous Franchise Fee.........................................................................21
11.5 CITY WASTE DIVERSION FEE.................................................................................................21
11.5.1 Residential CalRecycle Program and Administration Fee....................................................22
11.5.2 Commercial CalRecycle Program and Administration Fee..................................................22
11.5.3 Roll-Off and Miscellaneous Services CalRecycle Program and Administration Fee ..............22
11.6 PAYMENT OFCITY FEES............................................................................................................ 22
11.7 ADJUSTMENT OFCITY FEES...................................................................................................... 22 ARTICLE 12. CONTRACTOR’S COMPENSATION .................................................................................22
12.1 GENERAL ................................................................................................................................ 23
12.2 PUBLIC NOTICE/PUBLIC HEARING PROCESS ........................................................................... 23
12.2.1 Public Hearing Notices .....................................................................................................23
12.2.2 Customer Notices ............................................................................................................23
12.3 INITIAL RATES ......................................................................................................................23
12.4 ANNUAL FORMULA RATE ADJUSTMENTS .................................................................................. 24
12.5 CONTRACTOR’S RATE ADJUSTMENT APPLICATION ................................................................... 24
12.6 CAP ON CONSUMER PRICE INDEX............................................................................................ 25
12.7 CITY REVIEW ANDAPPROVAL................................................................................................... 25
12.8 CUSTOMER NOTICE................................................................................................................. 26
12.9 EXTRAORDINARYCOSTS.......................................................................................................... 26
12.9.1 Included Extraordinary Costs. ...........................................................................................26
12.9.2 Excluded Extraordinary Costs ...........................................................................................26
12.10 TIME IS OF THE ESSENCE...................................................................................................... 26
12.11 RATE REVIEW....................................................................................................................... 26
12.12 ANNUAL GROWTH-RELATEDREVIEW ................................................................................... 27 ARTICLE 13. PERFORMANCE, DEFAULTS AND REMEDIES...................................................................28
13.1 PERFORMANCE REVIEW .......................................................................................................... 28
13.1.1 Notice Of Unsatisfactory Performance ..............................................................................28
13.1.2 Administrative Review ......................................................................................................28
13.1.3 CONTRACTOR’s Written Response ...................................................................................28
13.1.4 Report to City Council.......................................................................................................28
13.1.5 Performance Review Hearing. ...........................................................................................28
13.2 LIQUIDATEDDAMAGES............................................................................................................ 29
13.2.1 General............................................................................................................................29
13.2.2 Service Performance Standards: Liquidated Damages for Failure to Meet Standards ...........29
13.2.3 Calculations for Liquidated Damages................................................................................30
13.2.4 Process for Assessment of Liquidated Damages ................................................................31
13.2.5 Timing of Payment............................................................................................................32
13.3 CITY RIGHT TO TERMINATE....................................................................................................... 32 Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
vi
A. If CONTRACTOR practices, or attempts to practice, any fraud or deceit upon the ........................32
13.4 NOTICE OFDEFAULT................................................................................................................ 34
13.5 RIGHT TO CURE ....................................................................................................................... 34
13.6 CITY'S RIGHT TO PERFORMSERVICE......................................................................................... 34 ARTICLE 14. INDEMNITY...................................................................................................................35
14.1 INDEMNIFICATION OFCITY...................................................................................................... 35
14.2 TAX LEVY INDEMNIFICATION.................................................................................................... 35
14.3 WASTEDIVERSION INDEMNIFICATION ..................................................................................... 36 ARTICLE 15. INSURANCE .................................................................................................................36
15.1 TYPES ANDAMOUNTS OFCOVERAGE ...................................................................................... 36
15.1.1 Workers’ Compensation and Employer’s Liability...............................................................36
15.1.2 Comprehensive General Liability.......................................................................................37
15.1.3 Automobile Liability..........................................................................................................38
15.1.4 SELF INSURED RETENTION...............................................................................................38
15.2 GENERAL INSURANCE PROVISIONS......................................................................................... 38
15.3 VARIATION .............................................................................................................................. 39
15.4 NOTICES ................................................................................................................................. 39 ARTICLE 16. PERFORMANCE BOND ..................................................................................................39
16.1 GENERAL ................................................................................................................................ 39 ARTICLE 17. OTHER AGREEMENTS OF THE PARTIES...........................................................................40
17.1 MERGER ANDINTEGRATION .................................................................................................... 40
17.2 JURISDICTION ......................................................................................................................... 40
17.3 SEVERABILITY.......................................................................................................................... 40
17.4 NON-WAIVER .......................................................................................................................... 40 ARTICLE 18. ADDITIONAL AGREEMENTS OF PARTIES.........................................................................40
18.1 RELATIONSHIP OF PARTIES; INDEPENDENTCONTRACTOR....................................................... 40
18.2 COMPLIANCE WITH LAW ......................................................................................................... 41
18.3 CHANGE OF OWNERSHIP ........................................................................................................ 41
18.3.1 Existing Shareholders .......................................................................................................41
18.3.2 Transfers Among Existing Shareholders .............................................................................41
18.3.3 Transfer to Immediate Family Members.............................................................................41
18.3.4 Core Management Employees ..........................................................................................42
18.4 SUCCESSORS ANDASSIGNS ................................................................................................... 42
18.4.1 Assignment by CONTRACTOR...........................................................................................42
18.4.2 Assignment by CITY..........................................................................................................42
18.4.3 Binding on Successors .....................................................................................................42
18.5 SUBCONTRACTING ................................................................................................................. 42
18.5.1 Affiliated Entity .................................................................................................................42
18.6 DISPUTES BETWEEN PARTIES................................................................................................... 43 Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
vii
18.7 FORCEMAJEURE ..................................................................................................................... 43 ARTICLE 19. MISCELLANEOUS PROVISIONS .....................................................................................43
19.1 PARTIES IN INTEREST ............................................................................................................... 43
19.2 NON-LIABILITY OFCITY’S OFFICERS ANDEMPLOYEES.............................................................. 44
19.3 WAIVER................................................................................................................................... 44
19.4 ATTACHMENTS........................................................................................................................ 44
19.5 ENTIRE AGREEMENT ................................................................................................................ 44
19.6 SECTION HEADINGS................................................................................................................ 44
19.7 INTERPRETATION..................................................................................................................... 44
19.8 AMENDMENT........................................................................................................................... 45
19.9 COSTS ANDATTORNEY’S FEES................................................................................................. 45
19.10 REFERENCE TO LAWS .......................................................................................................... 45
19.11 EQUAL OPPORTUNITY EMPLOYMENT ................................................................................... 45
19.12 NOTICES ............................................................................................................................. 45 ATTACHMENTS ................................................................................................................................46 ATTACHMENT A. DEFINITIONS ..........................................................................................................49 ATTACHMENT B. GENERAL SCOPE OF SERVICES ...............................................................................72 ATTACHMENT C. SB 1383 SERVICES..................................................................................................79
1. PROGRAM ADMINISTRATION ............................................................................................................... 79
2. WRITTEN OUTREACH ........................................................................................................................ 79
3. ADDITIONAL COMMERCIAL OUTREACH AND EDUCATION EFFORTS ............................................................... 80
1. CART SPECIFICATIONS,COLORS, IDENTIFICATION, AND LABELS .................................................................. 81 ATTACHMENT D. DEBRIS ABATEMENT PROGRAM ..............................................................................99 ATTACHMENT E. CONTRACTOR’S RULES AND REGULATIONS........................................................... 103 ATTACHMENT F. PREFERRED CDI WASTE HAULER PROGRAM .......................................................... 107 ATTACHMENT G. CITY FACILITIES AND CITY-SPONSORED EVENTS................................................... 109 ATTACHMENT H. DESIGNATED SOLID WASTE FACILITIES................................................................. 111 ATTACHMENT I. SCHEDULE OF MAXIMUM RATES EFFECTIVE JULY 1, 2024 ........................................ 114 ATTACHMENT J. RATE ADJUSTMENT PROCEDURES ......................................................................... 121 ATTACHMENT K. TAX ROLL BILLING PROCEDURE ............................................................................ 136 Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement 1
FRANCHISE AGREEMENT
FOR
SOLID WASTE MANAGEMENT SERVICES
This FRANCHISE AGREEMENT (“Agreement”) is made and entered into by and between the CITY OF DESERT HOT SPRINGS (“CITY”), a charter city organized and existing under the laws of the State of California, and DESERT VALLEY DISPOSAL, INC. (“CONTRACTOR”), a California corporation, (collectively the “Parties” and individually referred to as “Party”) this ___ day of _________, 2024.
RECITALS
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“Act”) and subsequent additions and amendments (codified at California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdiction; and,
WHEREAS, the State of California has found and declared that the amount of Solid Waste generated in California, coupled with diminishing landfill space and potential adverse environmental impacts from landfilling and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has, through enactment of AB 939 and subsequent related legislation including, but not limited to: AB 2176 (Chapter 879, Statutes of 2004), SB 1016 (Chapter 343, Statutes of 2008), AB 341 (Chapter 476, Statutes of 2011), AB 1826 (Chapter 727, Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2016), directed the responsible State agency, and all local agencies, to promote a reduction in Landfill Disposal and to maximize the use of feasible waste reduction, Reuse, Recycling, and composting options in order to reduce the amount of material that must be Disposed; and,
WHEREAS, the California Department of Resources Recycling and Recovery (“CalRecycle”) promulgated regulations to implement SB 1383 (the “SB 1383 Regulations”) for local jurisdictions, Generators, haulers, Solid Waste facilities, and other entities to support achievement of statewide Organic Waste Disposal reduction targets; and,
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
2 WHEREAS, SB 1383 Regulations require jurisdictions to implement solids waste Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements; and, the City of Desert Hot Springs (“City”) has chosen to delegate some of its responsibilities to Desert Valley Disposal, Inc. (“CONTRACTOR”), acting as the CITY’s designee, through this Agreement; and,
WHEREAS, consistent with provisions of the Act, including Public Resources Code Section 40059, aspects of solid waste handling are of local concern, including frequency of collection, means of collection and transportation, level of services, charges and fees, the nature, location, and extent of providing solid waste services, and whether the services are to be provided by means of a non-exclusive, partially exclusive, or wholly exclusive franchise, contract, license, or otherwise which may be granted by the CITY under terms and conditions prescribed by the City Council; and WHEREAS, Section 8.04.050 of the City’s Municipal Code permits the CITY to enter into a contract for waste disposal services; and
WHEREAS, CITY determination that granting an exclusive franchise agreement to a solid waste enterprise is in the best interests of the residents and business establishments in CITY, and for the protection of community health, safety and well-being; and, WHEREAS, CONTRACTOR has demonstrated through past performance and in negotiations conducted with CITY that CONTRACTOR is qualified and competent to perform the solid waste services desired by CITY; and,
WHEREAS, CONTRACTOR desires to engage in the business of Collecting Discarded Materials in the CITY; and,
WHEREAS, the CITY further declares its intent to approve and maintain the maximum approved rates for the Collection, transportation, Processing, Recycling, Composting, and/or Disposal of Discarded Materials; and,
WHEREAS, the Parties hereto desire to enter into a wholly exclusive agreement for the provision of Collection Services except for those limitations specified in this Agreement; and, WHEREAS, this Agreement has been developed by and is satisfactory to the CITY and the CONTRACTOR; and,
WHEREAS, the City Council finds that Desert Valley Disposal, Inc. possesses the labor, equipment, facilities, expertise, and financial capability to provide solid waste collection and Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
3 disposal services, recycling collection services, green waste collection services to all residential, commercial, and industrial premises in the City of Desert Hot Springs.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, CONDITIONS
AND CONSIDERATION CONTAINED HEREIN, THE CITY AND CONTRACTOR HEREBY AGREE AS FOLLOWS:
ARTICLE 1. DEFINITIONS
1.1 DEFINITIONS
Unless the context otherwise requires, capitalized terms used in this Agreement shall have the meanings set forth in the definitions contained in Attachment A.
1.2 STATUTORYDEFINITIONS
Unless a term is otherwise defined in this Agreement, terms used in this Agreement shall have the same meaning as the definitions of those terms contained in the Act. In the event of a conflict between the definition of a term in the Act and in this Agreement, the definition in the Agreement shall prevail.
ARTICLE 2. REPRESENTATION AND WARRANTIES OF
CONTRACTOR
2.1 STATUS
CONTRACTOR is a corporation duly organized, validly existing and in good standing under the laws of the State of California and is qualified to do business in the State of California.
2.2 CORPORATE AUTHORIZATION
CONTRACTOR has full legal right, power, and authority to execute and deliver this Agreement and perform its obligations hereunder. This Agreement has been duly executed and delivered by CONTRACTOR and constitutes a legal, valid, and binding obligation of the CONTRACTOR enforceable against the CONTRACTOR in accordance with its terms.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
4 2.3 NO APPROVALS REQUIRED
No approval, authorization, license, permit, order, or consent of, or declaration, registration or filing with any governmental or administrative authority, commission, board, agency, or instrumentality is required for the valid execution and delivery of this Agreement by CONTRACTOR, except such as have been duly obtained from its Board.
2.4 NO CONFLICT WITH APPLICABLE LAW OR OTHERDOCUMENTS
Neither the execution nor delivery by CONTRACTOR of this Agreement, the performance by CONTRACTOR of its Performance Obligations, nor the fulfillment by CONTRACTOR of the terms and conditions hereof: (a) Conflicts with, violates or results in a breach of applicable law; (b) Conflicts with, violates or results in a breach of any term or condition of any judgment, order or decree of any court, administrative agency or other government authority, or any agreement or instrument to which CONTRACTOR is a party or by which CONTRACTOR or any of its properties or assets are bound, or constitutes a default thereunder; or (c) Will result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of CONTRACTOR.
2.5 NO LITIGATION
There is no action, suit, proceeding or investigation, at law or in equity, before or by any court or governmental authority, commission, board, agency or instrumentality pending or, to the best of CONTRACTOR’s knowledge, threatened, against CONTRACTOR wherein an unfavorable decision, ruling or finding, in any single case or in the aggregate, would materially adversely affect the performance by CONTRACTOR of its obligations hereunder or in connection with the transactions contemplated hereby, or which, in any way, would adversely affect the validity or enforceability of this Agreement or any other agreement or instrument entered into by CONTRACTOR in connection with the transactions contemplated hereby.
2.6 ABILITY TO PERFORM
CONTRACTOR has the expertise and professional, technical, and financial capability to perform all of its obligations under this Agreement.
2.7 DUEDILIGENCE
CONTRACTOR has made an independent investigation satisfactory to it of the conditions and circumstances surrounding the Agreement and services it is required to perform.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
5 ARTICLE 3. REPRESENTATIONS AND WARRANTIES OF CITY
3.1 STATUS
CITY is a municipal corporation of the State of California, duly organized and validly existing under the Constitution and laws of the State of California.
3.2 MUNICIPAL AUTHORIZATION
CITY has full legal right, power, and authority to execute, deliver, and perform its obligations hereunder. This Agreement has been duly executed and delivered by CITY and constitutes a legal, valid, and binding obligation of CITY enforceable against CITY in accordance with its terms.
3.3 NO CONFLICT
Neither the execution or delivery by CITY of this Agreement, the performance by CITY of its Performance Obligations, nor the fulfillment by CITY of the terms and conditions hereof: (a) Conflicts with, violates or results in a breach of applicable law; or (b) Conflicts with, violates or results in a breach of any term or condition of any judgment, order or decree of any court, administrative agency or other government authority, or any agreement or instrument to which CITY is a party or by which CITY or any of its properties or assets are bound, or constitutes a default thereunder.
3.4 NO LITIGATION
There is no action, suit, proceeding or investigation, at law or in equity, before or by any court or governmental authority, commission, board, agency or instrumentality pending or, to the best of CITY’s knowledge, threatened, against CITY wherein an unfavorable decision, ruling or finding, in any single case or in the aggregate, would materially adversely affect the performance by CITY of its obligations hereunder or in connection with the transactions contemplated hereby, or which, in any way, would adversely affect the validity or enforceability of this Agreement or any other agreement or instrument entered into by CITY in connection with the transactions contemplated hereby.
3.5 NO WARRANT REGARDING WASTECHARACTERIZATION
CITY makes no warranties with respect to the characterization of Solid Waste within City.
CITY expressly disclaims any warranties, either express or implied, as to the merchantability or Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
6 fitness for any particular purpose of Solid Waste or Recyclable Materials collected by CONTRACTOR.
3.6 NO OTHER AGREEMENTS OR PERMIT
CITY warrants that it has not entered into or granted any agreements, contracts or permits to any Solid Waste Enterprise other than CONTRACTOR for Solid Waste handling services.
ARTICLE 4. TERM OF AGREEMENT
4.1 EFFECTIVEDATE
This Agreement shall become effective July 1, 2024. The prior Agreement between CITY and CONTRACTOR entered on March 18, 2014, including any amendments, shall terminate upon the Effective Date of this Agreement and is hereby replaced by this Agreement.
4.2 TERM
The Term of the Agreement shall be fifteen (15) years beginning July 1, 2024, and ending at midnight on June 30, 2039 (“Expiration Date”).
4.3 ANNUAL EXTENSION OF TERM
Effective on July 1, 2025, and on each July 1st thereafter, this Agreement shall be extended by one (1) full additional year subject to the payment of the Re-Investment Fee of Section 11.3.
Each Annual Extension shall be ratified by an action of the City Council.
Example: The first (1st) Annual Extension effective July 1, 2025, shall extend the term from June 30, 2039, to June 30, 2040.
4.3.1 TERMINATION OF ANNUAL EXTENSION
Either Party may terminate the Annual Extension of Term by serving a written Notice of Termination of Annual Extension upon the other, provided that said notice is served during the month of March immediately prior to the July 1st effective date of the next due annual extension. If the annual extension is so terminated, this Agreement shall continue in full force and effect until the Expiration Date.
4.3.2 REINSTATEMENT OF AUTOMATIC ANNUAL EXTENSION
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
7 Any Annual Extension of Term terminated in accordance with Section 4.3.1 may be reinstated by the mutual consent of the partiers.
4.4 OTHER RENEWAL OR EXTENSION
The Parties may further renew, extend, or amend the Term of this Agreement at any time by their written mutual consent.
4.5 PROCESSING FACILITY(IES)
4.5.1 GENERAL
CITY and CONTRACTOR have contemplated that CONTRACTOR would provide a Material Recovery Facility (MRF) to process Recyclable Materials collected in the Residential Recycling program to: (a) Provide for the efficient transportation of materials collected in the program; (b) Process commingled Construction and Demolition Materials generated in the City, both of which contribute to the CITY’s achievement of State-mandated Waste Diversion goals; and, (c) Potentially create new job opportunities for CITY’s residents. CITY and CONTRACTOR have further contemplated a new Agreement of sufficient term for CONTRACTOR to secure financing and amortize its investment in the MRF.
4.5.2 NEW AGREEMENT
If during the term of this Agreement, CONTRACTOR proceeds to establish Processing Facility(ies) through ownership interest or contractual arrangement and petitions CITY for a new agreement, CITY and CONTRACTOR shall enter into good faith negotiations for a new Agreement to become effective upon the start-up operation of the MRF and subject to the terms and conditions mutually agreeable to the Parties.
ARTICLE 5. SCOPE OF AGREEMENT
5.1 GRANT OF FRANCHISE
Through this Agreement, CITY grants to CONTRACTOR an exclusive franchise except as provided in Section 5.2 to collect the following materials in the Franchise Area. All Residential Premises, Commercial and community activities of every kind and description that generate Solid Waste and Curbside Recyclable Materials shall be required by CITY to utilize the Collection and Container Services of the CONTRACTOR provided for herein. Notwithstanding the limitations of Section 5.2, neither the CITY nor its residents shall make or enter into any other agreement or arrangement for the Collection, transport, removal, Disposal, or processing or Recyclable Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
8 Materials, Gray Container Waste, or Bulky Items in a manner that is not consistent with this Agreement. The CITY may, in its sole discretion, assist CONTRACTOR in the efforts of the CONTRACTOR to enforce its rights under this Agreement. Nothing in this Agreement shall be construed as to limit the CITY’s sovereign ability to make and enforce all laws within its jurisdiction.
5.2 LIMITATIONS
The Franchise granted to CONTRACTOR shall be exclusive except as to the categories of Solid Waste listed in this Section. The granting of this Franchise shall not preclude the categories of Solid Waste listed below from being delivered to and Collected and transported by others provided that nothing in this Agreement is intended to or shall be construed to excuse any Person from obtaining authorization from the CITY which is otherwise required by law.
5.2.1 SALE OR DONATION OF RECYCLABLE MATERIAL OR ORGANIC WASTE The sale or donation of Recyclable Material or Organic Waste by the Waste Generator to any person or entity other than CONTRACTOR; provided however, to the extent permitted by law, if the Generator is required to pay monetary or non-monetary consideration for the collection, transportation, transfer, or processing of Recyclable Material or Organic Material, the fact that Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay) shall not be considered a sale or donation.
5.2.2 SELF-HAULED RECYCLABLE MATERIAL OR ORGANIC WASTE
Recyclable Material and Organic Waste, which is removed from any Premises by the Waste Generator, and which is transported personally by such generator (or his or her full-time employees) to a Processing Facility, including a Community Composting site, Disposal Facility in a manner consistent with all applicable laws and regulations.
5.2.3 BEVERAGE CONTAINERS
Beverage containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act (California Public Resources Code, Section 14500, et seq).
5.2.4 INCIDENTAL REMOVAL OF GREEN WASTE
Green Waste removed from a Premises by a gardening, landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor rather than as a hauling service.
5.2.5 CONSTRUCTION, DEMOLITION, AND INERT DEBRIS
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
9 Construction, Demolition, and Inert Debris removed from the Premises by a contractor, building company, janitorial service or other entity utilizing its own employees and its own equipment, as an incidental part of a total service offered by that contractor.
5.2.6 EDIBLE FOOD.
Edible Food which is collected from a Generator by other person(s), such as a person from a Food Recovery Organization or Food Recovery Service, for the purposes of Food Recovery, or which is transported by the Generator to another person(s), such as a person from a Food Recovery Organization, for the purposes of Food Recovery, regardless of whether the Generator donates, sells, or pays a fee to the other person(s) to collect or receive the Edible Food from the Generator.
5.2.7 FOOD SCRAPS
Food Scraps that are separated by the Generator and used by the Generator or distributed to other person(s) for lawful use as animal feed, in accordance with 14 CCR Section 18983.1(b)(7). Food Scraps intended for animal feed may be Self-Hauled by Generator or hauled by another party.
5.2.8 ANIMAL WASTE
The collection, transfer, transport, Recycling, processing, and disposal of animal waste (excluding horse manure which is included in the scope of this Agreement) and remains from slaughterhouse or butcher shops for use as tallow.
5.2.9 SEWAGE TREATMENT BY-PRODUCTS
The collection, transfer, transport, Recycling, processing, and disposal of byproducts of sewage treatment, including sludge, sludge ash, grit, and screenings.
5.2.10 STREET SWEEPINGS
The collection, transfer, transport, Recycling, processing, and disposal of Street Sweepings regardless of source.
5.2.11 HAZARDOUS MATERIALS
The collection, transfer, transport, Recycling, processing, and disposal of Hazardous Substances, Hazardous Waste, and radioactive waste regardless of its source.
5.2.12 CITY OPERATIONS
The collection, transfer, transport, Recycling, processing, and disposal of Solid Waste by the CITY through CITY officers or employees in the normal course of their employment.
5.2.13 OTHER JURISDICTIONS
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
10 Solid Waste Handling Services for tribal entities, governmental agencies other than CITY, which may have facilities in City, but over which CITY has no jurisdiction in connection with the regulation of Solid Waste.
5.2.14 EXISTING SOLID WASTE ENTERPRISES
Solid Waste handling services provided by any Person having a legal right to continue doing so, pursuant to California Public Resources Code Section 49520, et. Seq., or otherwise, so long as and to the extent such legal right continues to exist.
5.2.15 OTHER LIMITATIONS
In addition to the foregoing, in the event that future interpretations of current law, future enactments or developing legal trends limit the ability of CITY to lawfully grant CONTRACTOR the scope of services as specifically set forth herein, CONTRACTOR agrees that the scope of this Agreement will be limited to those services and materials which may be lawfully provided, and that CITY shall not be responsible for any lost profits claimed by CONTRACTOR as a result thereof.
5.3 FRANCHISE AREA
The Franchise Area granted by this Agreement shall be all residential, commercial, industrial and construction Premises within the City, as set forth herein. As provided for below, the Franchise area may be changed by annexation.
5.4 ANNEXATION
Territory annexed into the City shall become part of the Franchise Area covered by this Agreement except that territory that is covered by an existing solid waste permit, license, agreement or franchise granted by another public entity may continue to be served by the same enterprise for the balance of the term of its permit, license, agreement or franchise, or as provided for in California Public Resources Code Section 49520.
ARTICLE 6. COLLECTION SERVICES
6.1 GENERAL
CONTRACTOR shall provide the experience, know-how, manpower, equipment, supervision, supplies, and services necessary to perform the services described in this Agreement and its Attachments:
Attachment B General Services
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
11 Attachment C SB 1383 Services
Attachment D Debris Abatement Program
Attachment E CONTRACTOR’s Rules and Regulations
Attachment F Preferred Hauler Program
CONTRACTOR shall meet annually with City Manager to review programs and the scope of services of the Agreement for the purposes of (i) adhering to government-mandated programs and procedures, and (ii) providing the community with the highest level of Solid Waste management services in the most cost-effective manner.
6.2 COLLECTIONS
CONTRACTOR shall Collect the contents and return each Container to the location where the Occupant properly placed the Container for Collection. CONTRACTOR shall place the Containers upright with lids properly closed and secured. CONTRACTOR shall use due care when handling Containers. CONTRACTOR shall not throw, roughly handle, damage, or break Containers.
6.3 NEWLY PAVEDSTREETS ANDROADS
CONTRACTOR shall exercise care and discretion when operating on newly paved public streets and roads. If in CONTRACTOR’s opinion Collection operations could cause damage to newly paved surfaces, CONTRACTOR may delay Collection up to three (3) workdays.
CONTRACTOR shall immediately notify CITY of its decision to delay Collection services due to concern for new road surfaces.
6.4 SPECIAL SERVICES
Upon Customer request, CONTRACTOR shall provide special services including unlocking and locking Containers; accessing locked Container enclosures (e.g., with a key or combination lock); and pulling or pushing Containers to the Collection vehicle. CONTRACTOR shall provide the special services described in this paragraph upon request from Customer and CONTRACTOR shall be entitled to bill Customer as specified in Attachment I, Schedule of Maximum Rates.
6.5 LITTER MITIGATION MEASURES
CONTRACTOR shall incorporate the following litter mitigation measures into Collection operations:
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
12 6.5.1 PUBLIC EDUCATION
Periodically, CONTRACTOR will reinforce the “Bag It” campaign in its residential newsletters to encourage residents to contain loose paper and other light materials before placing them in the Solid Waste or Recycling Cart for Collection.
6.5.2 COLLECTION VEHICLE DESIGN
CONTRACTOR’s replacement and/or new Residential Collection vehicles shall include hopper designs that minimize the escape of paper and other lightweight materials during Collection and travel between stops or the Disposal Facility or Processing Facility.
6.6 AUTHORIZEDRECYCLING AGENT
It is the intent of the CITY through this Franchise Agreement to designate CONTRACTOR as its authorized recycling agent pursuant to California Public Resources Code Section 40105. As such, CONTRACTOR is entitled to prosecute actions for treble damages or civil penalties pursuant to California Public Resources Code Section 41953, for unauthorized removal of Recyclable Materials placed for collection in the Residential curbside program, in violation of California Public Resources Code Section 41950.
6.7 DISABLEDPERSONS
Households with Disabled Persons, and with no able-bodied occupant, shall receive WalkIn Service at no additional charge.
6.8 COLLECTION FROM CITY FACILITIES
CONTRACTOR shall provide Solid Waste and Recycling services at no additional charge to the CITY Facilities described in Attachment G.
ARTICLE 7. DISPOSAL AND PROCESSING
7.1 DESIGNATEDFACILITIES
CONTRACTOR shall designate the Transfer Station, Disposal Facilities, and Processing Facilities to be used for the performance of this Agreement, and such designation shall be subject to the concurrence of the City Manager, which shall not be unreasonably withheld.
CONTRACTOR’s initial Designated Facilities are identified in Attachment H.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
13 ARTICLE 8. OTHER SERVICES
8.1 CUSTOMER BILLING
8.1.1 RESIDENTIAL DIRECT BILLING
Except for Premises billed as a levy on the County property tax bill, CONTRACTOR shall bill owners of Residential Dwellings receiving individual Collection, quarterly in advance.
8.1.2 COUNTY TAX ROLL BILLING
The primary method of billing for services to detached single family Residential Premises receiving individual Collection or attached multi-family residences receiving individual Collection shall be by a levy on the County property tax bill in accordance with the procedures outlined in Attachment K County Property Tax Roll Billing Procedure. CONTRACTOR may, at its sole option, revert to direct billing effective any July 1st, upon sixty (60) day written notice to CITY.
8.1.3 COMMERCIAL BIN AND INDUSTRIAL DIRECT BILLING
CONTRACTOR shall bill regular Commercial and Industrial Customers monthly in arrears.
8.1.4 TEMPORARY SERVICE BILLINGS
CONTRACTOR may require Customers arranging for Temporary Services to pre-pay for the services requested.
8.1.5 SERVICE TO DELINQUENT ACCOUNTS
CONTRACTOR shall not discontinue service to Customers that do not pay for services rendered, however CONTRACTOR may reduce services of Commercial Customers to a minimum service level until the account is brought current or the City Council authorizes placing the delinquent account on the County property tax bill as a lien or unless otherwise agreed to by the parties.
8.1.6 COLLECTION OF PAYMENT FROM DELINQUENT ACCOUNTS.
CITY agrees to handle the collection of delinquent accounts as a lien on the property collected on the County Property Tax Bill in accordance with the procedures outlined in Attachment K, County Property Tax Roll Billing Procedure.
8.2 CUSTOMER SERVICE
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
14 CONTRACTOR shall maintain a staffed Customer service center in Palm Springs and operated Monday through Friday, 8:00 AM to 5:00 PM, for the purpose of receiving payments, responding to customer inquiries, and receiving Customer reports regarding service.
8.3 WASTEDIVERSION
8.3.1 PREFERRED C&D WASTE HAULER
CITY hereby designates CONTRACTOR as its “Preferred Construction, Demolition and Inert Waste Hauler” for the purposes of diverting such materials. CONTRACTOR hereby agrees to perform the duties described in Attachment F attached hereto and made a part hereof, adhere to the terms of Desert Hot Springs Municipal Code Chapter 8.08, and adhere to all other applicable laws when serving as the CITY’s Preferred CDI Waste Hauler.
8.3.2 LIAISON AND REPORTING
CONTRACTOR, at its own expense and without additional compensation, shall serve as CITY’s liaison with State agencies regulating solid waste generation and diversion and shall prepare required analyses, correspondence, and reports, including CITY’S Electronic Annual Report to CalRecycle, on behalf of CITY, subject to the CITY’s direction and approval.
CONTRACTOR shall keep City Manager abreast of all correspondence and reporting. CITY shall cooperate with CONTRACTOR by providing records and documentation needed for reporting in a timely fashion.
8.3.3 WASTE AUDITS
CONTRACTOR shall offer complimentary waste audits and recycling consultation to all Commercial and Industrial Customers.
ARTICLE 9. OPERATING REQUIREMENTS
9.1 COLLECTION HOURS ANDSCHEDULES
9.1.1 RESIDENTIAL COLLECTION
CONTRACTOR shall: (a) Organize collections of Solid Waste, Recyclables and Green Waste from Residential Premises according to a regular Collection schedule which shall not be changed without providing a fourteen (14) calendar day advance notice to CITY and a seven (7) calendar day advance notice to Customers; (b) Perform collections of Solid Waste, Recyclables and Green Waste once each week each on the same scheduled day; (c) Collect Solid Waste and Recyclables from Residential Premises between the hours of 6 AM and 6 PM, Monday through Friday.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
15 9.1.2 COMMERCIAL AND INDUSTRIAL COLLECTION
CONTRACTOR shall: (a) Organize collections of Solid Waste and Recyclables from Commercial and Industrial Premises according to a regular collection schedule which shall not be changed without providing a seven (7) calendar day advance notice to Customers; (b) Perform collections of Solid Waste and Recyclables once each week, or more frequently as may be required by Customer; (c) Perform collections of Solid Waste and Recyclables between the hours of 6 AM and 6 PM, Monday through Saturday.
9.1.3 HOLIDAYS
CONTRACTOR shall annually notify Customers of its Holidays. When a regularly scheduled Collection falls on a Holiday, CONTRACTOR shall perform that and all other collections for the remainder of the week on the next day, except that no collections will be performed on Sunday.
9.2 COLLECTION STANDARDS
9.2.1 GENERAL
CONTRACTOR shall perform all services in a prompt, thorough, comprehensive, reliable, courteous, and professional manner.
9.2.2 LITTER
CONTRACTOR shall use due care to prevent Solid Waste from being spilled or scattered during Collection and transportation. All vehicles, Bins and Debris Boxes shall be covered during transport to the Disposal Facility or Processing Facility. CONTRACTOR shall not transfer loads from one vehicle to another on any public street unless the transfer is made necessary due to mechanical failure or accidental damage of a vehicle. If any Solid Waste is spilled or scattered during Collection or transportation, CONTRACTOR shall immediately clean up the spilled or scattered Solid Waste.
9.2.3 PRIVATE PROPERTY
CONTRACTOR shall use due care in entering and exiting Customers’ private property and enclosures. CONTRACTOR shall promptly repair or compensate Customer for all damages to Customer’s personal property or improvements to real property, except normal wear and tear, caused by the actions or omissions of CONTRACTOR’s employees or vehicles.
9.2.4 COMMERCIAL BINS AND RESIDENTIAL CONTAINERS
After making Collections, CONTRACTOR shall return all Commercial Bins and Residential Carts to the prior location or, if necessary, to an alternate location which does not obstruct traffic or access to Customer’s property.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
16 9.2.5 PAVEMENT
Where Commercial Bins and Residential Containers are located on public or private property and a Customer can demonstrate, to the satisfaction of the City Engineer, or his or her designee, that a driving surface or other paved area, engineered, constructed, and maintained for regular heavy truck traffic, has been damaged because: (a) A vehicle exceeded the legal maximum weight limits established by the State; or, (b) The negligent operation of a vehicle by CONTRACTOR’s employee, CONTRACTOR shall be solely responsible to promptly repair or compensate Customer for all damages to the pavement prorated for age, other traffic, and normal wear and tear.
9.2.6 NOISE
CONTRACTOR shall conduct Collection as quietly as possible and shall conform to applicable noise regulations.
9.3 EXCEPTIONS TO COLLECTION STANDARDS
CONTRACTOR shall not be required to Collect the following:
9.3.1 UN-CONTAINED MATERIALS OR OVERLOADED CONTAINERS
Solid Waste and Recyclables not contained within the Container level full with the lid closed when so equipped.
9.3.2 CONTAMINATED RECYCLABLES
Recyclable Containers that include trash or contaminants.
9.3.3 INACCESSIBLE CONTAINERS ACCESSIBLE
Containers not accessible to CONTRACTOR for Collection.
9.3.4 UNSAFE CONDITIONS
Containers placed in an improper or unsafe position or Collection location.
9.3.5 HAZARDOUS WASTE OR UNSAFE MATERIALS.
Materials that present a health or safety threat to CONTRACTOR’s employees or the general public.
9.3.6 EXCESS AMOUNTS.
Solid Waste or Recyclable Materials in amounts in excess of the volume subscribed to by the Customer.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
17 9.4 CONTRACTOR’S RULES ANDREGULATIONS
Subject to the approval of the City Manager, CONTRACTOR may establish and enforce reasonable service rules and regulations. CONTRACTOR’s initial rules and regulations are described in Attachment E.
9.5 CONTRACTOR FACILITIES
CONTRACTOR shall not be required to establish office or other facilities in the CITY provided CONTRACTOR maintains an office in Palm Springs.
9.6 VEHICLES
CONTRACTOR shall provide a fleet of collection vehicles sufficient in number and capacity to perform the work required by this Agreement in strict accordance with its terms. CONTRACTOR agrees to maintain each piece of equipment used by it in good order and repair. All vehicles shall be uniformly painted. All vehicles shall be registered with the California Department of Motor Vehicles and shall meet or exceed all applicable state and local requirements.
9.6.1 VEHICLE IDENTIFICATION
All vehicles used in the performance of this Agreement shall bear the CONTRACTOR's name, phone number and vehicle number in minimum lettering of two (2) inches.
9.6.2 VEHICLE STORAGE
No vehicle used by CONTRACTOR in performance of this Agreement shall be stored on any public street or other public property in the CITY. All vehicles if kept within the boundaries of the CITY shall at all times when not in use be kept on property of the proper zone either within a building or fenced yard.
9.7 CONTAINERS
CONTRACTOR shall provide Residential, Commercial and Industrial Customers with Containers equipped with attached lids, except Debris Boxes, and wheels and designed and constructed for the purpose of storage and Collection of Solid Waste: (a) Carts for Solid Waste and Recycling shall be of a capacity of approximately 96-gallons and of uniform colors for each use; (b) Commercial Bins shall be of capacities of approximately 2-, 3- or 4-cubic yards and of uniform color; and, (c) Open top Debris Boxes shall be of capacities of approximately 10-, 20-, 30- or 40- cubic yards and of uniform color.
9.7.1 CONTAINER MAINTENANCE
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
18 CONTRACTOR shall maintain and repaint CONTRACTOR-Provided Containers as needed. CONTRACTOR shall repair or replace all Customer Provided Containers damaged by CONTRACTOR's operations.
9.8 PERSONNEL
CONTRACTOR shall furnish such qualified drivers, mechanical, supervisory, clerical, and other personnel as may be necessary to provide the services required by this Agreement in a courteous, safe, and efficient manner.
9.8.1 UNIFORMS
CONTRACTOR shall require its drivers and all other collection personnel to wear a suitable and appropriate uniform as a means of identifying the employee.
9.8.2 SAFETY TRAINING
CONTRACTOR shall provide suitable operational and safety training for all its employees who use or operate vehicles or equipment for Collection of Solid Waste or who are otherwise directly involved in such Collection. CONTRACTOR shall train its employees involved in Solid Waste Collection to identify, and not to collect, hazardous or infectious waste.
9.8.3 NO GRATUITIES
CONTRACTOR shall not permit its employees to demand or solicit, directly or indirectly, any additional compensation or gratuity from members of the public for the work performed by those employees pursuant to this Agreement.
9.9 COMMUNICATION WITH CITY
CONTRACTOR shall designate an individual or individuals as its liaison to communicate with CITY.
ARTICLE 10. RECORD KEEPING AND REPORTING
10.1 GENERAL RECORDKEEPING PROVISIONS
CONTRACTOR shall maintain ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or performance hereunder, for four (4) years or any longer period required by applicable law, which shall survive the end of the Agreement.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
19 10.2 STATEMENT OF GROSS BILLINGS
CONTRACTOR shall prepare annually a statement of its total Gross Billings by category of service from all revenues attributable to all operations within the City of Desert Hot Springs prepared, on a reviewed basis, by an independent certified public accountant in accordance with generally accepted accounting, consistently applied.
10.3 INSPECTION OFCONTRACTOR'S ACCOUNTS ANDRECORDS
CONTRACTOR's record of complaints, Gross Billings, Franchise Fee payments, customer payment histories, and Disposal and Diversion Tonnages shall be available at the CONTRACTOR's principal office at any time during regular business hours for inspection and/or audit by the City Manager or his duly authorized representative for a period of three (3) years following the close of the CONTRACTOR's Fiscal Year, which ends September 30. CONTRACTOR shall provide CITY with a copy of any requested record at no cost to CITY.
10.4 COST OF AUDIT
Should an audit by the CITY disclose that the Franchise Fees payable by the CONTRACTOR were underpaid by two percent (2%) or more, or that Residential or Commercial and Industrial Customers were overcharged by two percent (2%) or more, for the period under review, CONTRACTOR shall pay for the cost of CITY's audit.
10.5 PAYMENT ANDREFUNDS
Should an audit by the CITY disclose that the Franchise Fees payable by the CONTRACTOR were underpaid or that customers were overcharged for the period under review, CONTRACTOR shall pay to CITY any underpayments of Franchise Fees and/or refund to CONTRACTOR's customers any overcharges, within thirty (30) days of receiving written notification of the underpayment. Should an audit disclose that Franchise Fees were overpaid, CITY shall refund to CONTRACTOR the amount of the overpayment within thirty (30) days of receiving the audit results indicating such overpayment.
10.6 ANNUAL REPORT OF OPERATIONS
Upon request of CITY, CONTRACTOR shall provide a written report of its operations conducted for CITY for the most recent Calendar Year. The annual report shall include, but not be limited to: (a) Solid Waste, Organic Waste and Recyclable Material tons collected and delivered to a Disposal Facility or Processing Facility; (b) Summary of complaints received; (c) Problems Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
20 encountered; (d) Public outreach efforts; (e) Significant events; (f) Other pertinent information about CONTRACTOR’s operations in CITY; and (g) any other information requested by the CITY.
ARTICLE 11. CONTRACTOR PAYMENTS
11.1 CONTRACTING FEE
Prior to the Effective Date, CONTRACTOR shall make a one-time, lump sum payment of One Hundred Twenty-Five Thousand Dollars ($125,000.00) to reimburse CITY for costs it incurred in connection with entering this Agreement.
11.2 DEBRIS ABATEMENT PROGRAM COST WAIVER
CONTRACTOR hereby waives Two Hundred Twenty-Eight Thousand Four Hundred SeventySeven Dollars and Eighty-Four Cents ($228,477.84) as the cost of the Debris Abatement Program described in Attachment D due from CITY for the period July 1, 2024 through June 30, 2025. This waiver is a one-time expenditure savings for the CITY for the stated period.
11.3 RE-INVESTMENT PAYMENT
In consideration for the Annual Extension of Term described in Section 4.3, CONTRACTOR shall make an annual payment to CITY, or waive costs to CITY, as selected by City Manager from the following options and approved by City Council.
11.3.1 RE-INVESTMENT PAYMENT
An annual Re-Investment Payment due to CITY on or before July 1, 2025, in the amount of:
Two Hundred Thousand Dollars ($200,000.00).
Effective July 1, 2026, and each July 1st thereafter, the amount of the annual ReInvestment Payment shall be adjusted by the percentage change in the Consumer Price Index as described in Attachment J.
11.3.2 ALTERNATIVE RE-INVESTMENT PAYMENT
In lieu of the Re-Investment Payment described in Section 11.3.1, CITY may elect for CONTRACTOR to fund one of the following:
A. Debris Abatement Program
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
21 Offset the amount due to CONTRACTOR from CITY for the cost of the Debris Abatement Program described in Attachment D in the annual cumulative amount equal to the annual Re-Investment Payment specified in Subsection
11.3.1. B. New Program(s)
Offset the amount due to CONTRACTOR for new or expanded Solid Waste programs selected by City Manager and performed by CONTRACTOR in the annual cumulative amount equal to the annual Re-Investment Payment specified in Subsection 11.3.1.
11.3.3 CITY MANAGER SELECTION
City Manager and CONTRACTOR’s Contract Liaison shall meet each April to confer on the Re-Investment Fee, Debris Abatement Program, and other potential services. City Manager shall notify CONTRACTOR in writing of his/her selection annually on or before May 15th of each year. The Annual Extension and City Manager’s Re-Investment Payment selection shall then be placed on the agenda of a regular City Council meeting for approval not later than June 30th of each year. Each selection shall be for a period of one year, July 1 through June 30.
11.4 FRANCHISE FEE
In consideration of the exclusive franchise granted to CONTRACTOR by this Agreement, and to reimburse CITY for CONTRACTOR’s right to enter and use CITY property, including CITY streets, roads and right-of-way, and CITY costs incurred in administering this Agreement, CONTRACTOR shall pay to CITY Franchise Fees as a percentage of Gross Billings:
11.4.1 RESIDENTIAL FRANCHISE FEE
8.66% of Gross Billings.
11.4.2 COMMERCIAL FRANCHISE FEE
16.83% of Gross Billings.
11.4.3 ROLL-OFF AND MISCELLANEOUS FRANCHISE FEE
15.42% of Gross Billings.
11.5 CITY WASTE DIVERSION FEE
As a pass-through of CITY’s costs for enacting regulations, designing programs, conducting outreach and education, monitoring, reporting, and enforcing State regulations, CONTRACTOR shall remit to CITY a City Waste Diversion Fee as a percentage of Gross Billings:
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
22 11.5.1 RESIDENTIAL CALRECYCLE PROGRAM AND ADMINISTRATION FEE
1.84% of Gross Billings.
11.5.2 COMMERCIAL CALRECYCLE PROGRAM AND ADMINISTRATION FEE
2.70% of Gross Billings.
11.5.3 ROLL-OFF AND MISCELLANEOUS SERVICES CALRECYCLE PROGRAM AND
ADMINISTRATION FEE
5.13% of Gross Billings.
11.6 PAYMENT OFCITY FEES
CONTRACTOR shall remit Franchise Fees and City Waste Diversion Fees to CITY quarterly within thirty (30) calendar days following the end of each Calendar Quarter. CONTRACTOR’s payments shall be accompanied by a statement showing the calculation of the amount due CITY and the following payment certification executed by an officer of the CONTRACTOR:
“I hereby certify that the foregoing statement of the payment to the City is made by me, that I am authorized to make such payment of the amount of the payment due, and that, to the best of my knowledge and belief, the amount of the payment is true, correct and complete.”
e, and that, to the best of my knowledge and belief, the amount of the payment is true, correct and complete.”
11.7 ADJUSTMENT OFCITY FEES
CITY may from time to time increase the amount of the fees described in this Agreement or establish additional fees. Changes in the total amount of fees to be collected by CONTRACTOR and remitted to CITY shall be reflected in a corresponding adjustment to CONTRACTOR’s Compensation and Rates coinciding with the effective date of the fee adjustment or establishment of an additional fee, which shall be a Pass-Through Cost. Any notices, mailings, and proceedings required for any protest hearing procedure required by Statute and precipitated solely by the CITY’s changes to its fees shall be executed by CITY at its sole expense. ted by CITY at its sole expense.
ARTICLE 12. CONTRACTOR’S COMPENSATION
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
23 12.1 GENERAL
CONTRACTOR’s compensation provided for in this Article 12, whether billed directly by CONTRACTOR or paid by CITY from a levy placed on the County property tax bill, shall be the full, entire, and complete compensation due CONTRACTOR pursuant to this Agreement for all labor, equipment, materials and supplies, fees charged at the Disposal Facilities and Processing Facilities used by CONTRACTOR, fees due CITY, taxes, insurance, bonds, overhead and profit and all other items necessary to perform all of the services in the manner required by the Agreement and specified in Attachment I, Schedule of Maximum Rates.
12.2 PUBLIC NOTICE/PUBLIC HEARING PROCESS
The CITY may subject any new or increased rates to a majority protest proceeding under Proposition 218 as it deems necessary or advisable. If, at any time, a Rate adjustment determined to be appropriate by both CITY (which determination will not be unreasonably withheld) and CONTRACTOR to compensate CONTRACTOR for increases in costs as described in this Agreement cannot be implemented for any reason, CONTRACTOR and CITY shall negotiate in good faith, a reduction of services equal to the value of the rate adjustment that cannot be implemented. If CITY and CONTRACTOR are unable to reach agreement about such a reduction of services, the Parties agree to refer the matter to a mediator jointly selected by CITY and CONTRACTOR for determination, the cost of which shall be shared equally by the Parties. Nothing herein is intended to imply that California Constitution, Articles XIII C or XIII D, apply to the Rates established for services provided under this Agreement; rather this Section is provided merely to allocate risk of an adverse judicial interpretation between the Parties.
12.2.1 PUBLIC HEARING NOTICES
CONTRACTOR shall pay for the printing and mailing of Proposition 218 Public Hearing Notices and notices of annual rate adjustments in accordance with Government Code Section 53756.
12.2.2 CUSTOMER NOTICES
For rate adjustments for which a Proposition 218 public notice of Section 12.2 is not necessary, CONTRACTOR shall provide thirty (30) days advance written notice to Customers. Such written notice may be made by an insert in CONTRACTOR’s billing statement.
12.3 INITIAL RATES
The initial maximum rates (a) that CONTRACTOR shall be permitted to charge for CONTRACTOR’s services or (b) that CITY shall pay CONTRACTOR for service to Residential Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
24 Premises billed by CITY as a levy on the County property tax bill, are those Rates specified in Attachment I, Schedule of Maximum Rates effective July 1, 2024.
The rate structure has three customer classes: (i) Residential, (ii) Commercial, and (iii) RollOff/Miscellaneous). The rates are determined based on a combination of container size, type of container, and frequency of Collection.
The rate structure is comprised of service fees and material tipping fees.
12.4 ANNUAL FORMULA RATE ADJUSTMENTS
The Schedule of Maximum Rates presented in Attachment I shall be adjusted July 1, 2025, and each July 1st thereafter based upon the change in the rate adjustment formula described in Attachment J which accounts for changes in: (i) the material component represented by the Solid Waste tonnage and Tip Fees charged by the facility receiving the Solid Waste, and (ii) changes in the service component represented by changes in the Consumer Price Index, both weighted proportionately. (Material Tip Fees are billed to Roll-Off at cost at the time service is rendered and therefore Roll-Off service fees are only subject to adjustments for changes in the Consumer Price Index.)
In accordance with California Constitution, Articles XIII C or XIII D the rates enacted July 1, 2022, followed a publicly noticed protest hearing process. The Parties acknowledge that an annual formula adjustment procedure was included in the 2022 proceedings and that the ensuing formula rate adjustments for the ensuing four (4) consecutive years may be implemented without repeating the publicly noticed protest hearing process. The next publicly noticed protest hearing process is programmed for the rate adjustment effective July 1, 2027.
12.5 CONTRACTOR’S RATE ADJUSTMENT APPLICATION
On or before March 1, 2025, and each March 1st thereafter, CONTRACTOR shall submit to City Manager directly or by electronic mail a rate adjustment application following the formula set forth in Attachment J.
CONTRACTOR’s rate adjustment application shall consist of the following:
A. A transmittal letter.
B. The Proposed Schedule of Maximum Rates effective July 1st.
C. The Schedule of Maximum Rates currently in effect.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
25 D. Rate Adjustment Workpapers. (Note: CONTRACTOR’S Workpapers from the 2024 Rate Adjustment Application serve as examples and are presented as Exhibits to Attachment J.)
a. Revenue Component Weighting (Exhibit 1).
b. Residential Solid Waste Tonnage for the CONTRACTOR’s Fiscal Year previous to the most recent Fiscal Year (Exhibit 2).
c. Residential Solid waste Tonnage for the CONTRACTOR’s most recent Fiscal Year (Exhibit 3).
d. Commercial Solid Waste Tonnage for the CONTRACTOR’s Fiscal Year previous to the most recent Fiscal Year (Exhibit 4).
e. Commercial Solid Waste Tonnage for the CONTRACTOR’s most recent Fiscal Year (Exhibit 5).
f. Material Tip Fees (Exhibit 6).
g. Change in Residential Material Cost Index (Exhibit 7). h. Change in Commercial Material Cost Index (Exhibit 8). i. Change in Consumer Price Index (Exhibit 9).
j. Weighted Rate Adjustment (Exhibit 10).
E. Facility Tip Fee Price Lists.
12.6 CAP ON CONSUMER PRICE INDEX
Any rate adjustment for changes in the Consumer Price Index described in Attachment J shall not exceed Six Percent (6%) in any single year. Should the change in the Consumer Price Index exceed Six Percent (6%), CONTRACTOR shall be permitted to carry any excess forward to the next year to be combined with the percentage change for that year. Index changes may be carried forward to multiple subsequent years until they are fully applied.
12.7 CITY REVIEW ANDAPPROVAL
The CITY will confirm the calculations of CONTRACTOR’s rate adjustment application in writing within thirty (30) days of receipt of CONTRACTOR’s application. Formula rate adjustments may be confirmed administratively by the City Manager and when such administrative confirmation is given, CONTRACTOR is authorized to proceed with implementing said rates.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
26 If CITY’s written confirmation is not received within thirty (30) days of receipt of CONTRACTOR’s application, CONTRACTOR shall be authorized to proceed with the new rates as submitted.
12.8 CUSTOMER NOTICE
CONTRACTOR shall provide a mailed thirty (30) day advance notice to Customers of any rate increase for which a publicly noticed protest hearing process is not conducted.
12.9 EXTRAORDINARYCOSTS
In lieu of the annual formula rate adjustment set forth in Section 12.4, CONTRACTOR may request an adjustment in the rates and charges set forth in Attachment FI, Schedule of Maximum Rates, for extraordinary changes in the cost of doing business.
12.9.1 INCLUDED EXTRAORDINARY COSTS.
The following shall be eligible for consideration as an extraordinary cost of CONTRACTOR: (a) Changes in law or regulations enacted after the Effective Date of this Agreement by Federal, State, or local regulatory agencies, including CITY’s municipal Code; (b) Changes in operating costs brought about by unforeseen circumstances beyond the control of CONTRACTOR; and (c) Temporary or permanent closure of the Disposal Facility designated in Article 7.
12.9.2 EXCLUDED EXTRAORDINARY COSTS
The following shall not be eligible for consideration as an extraordinary cost of CONTRACTOR: (a) Inaccurate estimates assumed by CONTRACTOR of its proposed cost of operations; and (b) Changes in the cost of providing service due to unionization of the work force or a change in wage rates or employee benefits.
12.10 TIME IS OF THE ESSENCE
The CONTRACTOR and City recognize that time is of the essence whenever a review of rates is undertaken. Pursuant to Government Code Section 66016(b), any rate increase must be approved by the resolution or ordinance. CONTRACTOR shall submit requests for rate increases, if at all, no later than March 31st of any given year.
12.11 RATE REVIEW
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
27 CITY may, at its sole discretion, undertake a periodic review of CONTRACTOR’s rates for services. The purpose of such a review shall be to make a finding as to the reasonableness of CONTRACTOR’s rates for services. Such a rate review may be performed in any year in which a Proposition 218 public protest hearing procedure is undertaken but no more frequently than once every five (5) years.
The review shall compare CONTRACTOR’s Operating Expenses as a percentage of Gross Billings determined from CONTRACTOR’S most recent year-end financial statement compared to the average Operating Expenses as a percentage of total revenue of the three largest US-based publicly traded Solid Waste firms for which at least Fifty Percent (50%) of revenue is derived from Solid Waste Collection operations, for their most recent fiscal years.
The test of reasonableness shall be a determination that CONTRACTOR’s total Operating Expense expressed as a percent of its Gross Billings is within Two Percent (+2%) of the same measure applied to the average of the three public companies for Operating Expenses and Total Revenue reported in their most recent year-end financial statements.
CITY may, at its own expense, retain an outside expert to assist CITY in its evaluation and reasonableness determination, provided that the review of CONTRACTOR’s financial statement shall be performed by a certified public accountant.
The CITY may request from CONTRACTOR such further information as it deems necessary for its evaluation. As a privately held company, CONTRACTOR must maintain the confidentiality of its financial information and is unable to release financial records. As part of its evaluation, CITY may review CONTRACTOR’s financial statements in a setting that provides CITY the necessary information provided that no copies, reproductions, photos, or recreations will be allowed to be retained by CITY or its expert.
Any comparison of rates with other jurisdictions undertaken as a part of Section 12.11 or
12.12 shall give consideration to distinguishing features including, but not limited to, range of services, waste generation per capita, household vacancy rates, home ownership, density, CITY Fees, Customer waste practices, billing methods, commercial enclosure standards, amount of free services to City Facilities, mix of Service Sectors, adherence to Solid Waste rules, code violations related to health and safety, and the like all compared with other Coachella Valley jurisdictions.
12.12 ANNUAL GROWTH-RELATEDREVIEW
Annually, as a part of any rate adjustment procedure described in this Article 12, CONTRACTOR and City Manager shall meet to evaluate the growth in service units, particularly Commercial service, occurring during the current Rate Year for the purpose of identifying opportunities to reduce rates to Residential Premises.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
28 ARTICLE 13. PERFORMANCE, DEFAULTS AND REMEDIES
13.1 PERFORMANCE REVIEW
If, in City Manager’s opinion, CONTRACTOR is not satisfactorily performing the Collection services required of this Agreement, a performance review may be undertaken.
13.1.1 NOTICE OF UNSATISFACTORY PERFORMANCE
City Manager shall first notify CONTRACTOR in writing of the instances of unsatisfactory performance. City Manager’s notice shall include specific information about the provision of the Agreement in question and the dates, times, locations, and description of performance issues.
13.1.2 ADMINISTRATIVE REVIEW
Within fifteen (15) days following receipt of City Manager’s Notice of Unsatisfactory Performance, the Parties shall meet in good faith in an administrative review conducted by the City Manager to resolve the matter to the reasonable satisfaction of both Parties.
13.1.3 CONTRACTOR’S WRITTEN RESPONSE
Within fifteen (15) days of the administrative review conducted by the City Manager, CONTRACTOR shall submit its written response, addressing each instance of alleged unsatisfactory performance together with a plan and schedule of corrective action, and or refuting the allegations.
13.1.4 REPORT TO CITY COUNCIL
If, in City Manager’s opinion, CONTRACTOR’s response, plan and schedule for corrective action is insufficient, or that CONTRACTOR’s continued performance so warrants, City Manager shall present a written report at a regularly scheduled meeting of the City Council. The City Council may set the time and place for a public hearing regarding CONTRACTOR’s performance or take no action.
13.1.5 PERFORMANCE REVIEW HEARING.
City Council may convene a public hearing at a regular meeting of the City Council for the purpose of taking testimony from the City Manager, CONTRACTOR, and the public regarding CONTRACTOR’s performance. At the close of the public hearing the City Council may take no action or may find CONTRACTOR’s performance to be satisfactory or unsatisfactory. If City Council finds CONTRACTOR’s performance to be unsatisfactory, City Council may establish a compliance plan or find CONTRACTOR in breach of the Agreement and pursue other remedies or actions available under this Agreement.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
29 13.2 LIQUIDATEDDAMAGES
13.2.1 GENERAL
The CITY finds, and CONTRACTOR agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by CITY as a result of a breach by CONTRACTOR of certain specific obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that:
A. Substantial damage results to members of the public who are denied services or denied quality or reliable service.
B. Such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms.
C. The services that are the subject of this Agreement might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms.
D. The termination of this Agreement for such specific breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches.
13.2.2 SERVICE PERFORMANCE STANDARDS: LIQUIDATED DAMAGES FOR FAILURE
TO MEET STANDARDS
The Parties further acknowledge that consistent, reliable Solid Waste Management Service is of utmost importance to CITY and that CITY has considered and relied on CONTRACTOR' s representations as to its quality-of-service commitment in entering this Agreement with it. The Parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if CONTRACTOR fails to achieve the performance standards or fails to submit required documents in a timely manner, CITY and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which CITY will suffer. Therefore, without prejudice to CITY' s right to treat such breaches as an event of default, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
30 the range of harm to CITY that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made.
CONTRACTOR CITY
Initial Here ________________ Initial Here ________________
13.2.3 CALCULATIONS FOR LIQUIDATED DAMAGES
CONTRACTOR agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below for each type of action warranting such damages:
A. Collection Reliability
(1) For each failure to commence service to a new Customer account within seven (7) days after order, which exceed five (5) such failures annually:
One Hundred Fifty Dollars ($150.00).
(2) For each failure, which exceeds ten (10) such failures annually, to Collect Solid Waste from any established Customer account on the scheduled Collection day and not Collected within the period described in this Agreement:
One Hundred Fifty Dollars ($150.00).
(3) For each failure to Collect Solid Waste, which has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days:
One Hundred Fifty Dollars ($150.00).
B. Collection Quality
(1) For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright with lids secured which exceeds ten (10) such occurrences annually:
One Hundred Fifty Dollars ($150.00).
(2) For each occurrence of excessive noise or discourteous behavior which exceeds ten (10) such occurrences annually:
Two Hundred Fifty Dollars ($250. 00).
(3) For each occurrence of Collecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences annually:
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
31 Two Hundred Fifty Dollars ($250.00).
(4) For each occurrence of damage to private property which exceeds five (5) such occurrences annually:
Two Hundred Fifty Dollars ($ 250.00).
(5) For each failure to clean up Solid Waste spilled from Containers within ninety (90) minutes that exceeds ten (10) such failures annually:
One Hundred Fifty Dollars ($150.00).
C. Customer Responsiveness
(1) For each failure to initially respond to a Customer complaint within one (1) business day, which exceeds five (5) such occurrences annually, and for each additional day in which the complaint is not addressed:
Two Hundred Fifty Dollars ($250.00).
(2) For each failure to process Customer complaints to CITY as which exceeds five (5) such occurrences annually:
Two Hundred Fifty Dollars ($250.00).
(3) For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within seven (7) calendar days of request from CITY or Customers:
One Hundred Fifty Dollars ($150.00).
13.2.4 PROCESS FOR ASSESSMENT OF LIQUIDATED DAMAGES
A. CITY may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints.
B. Prior to assessing liquidated damages, CITY shall give CONTRACTOR notice of its intention to do so. The notice will include a brief description of the incident(s) / nonperformance. CONTRACTOR may review (and make copies at its own expense) all information in the possession of CITY relating to incident(s) / nonperformance. CONTRACTOR may, within ten (10) days after receiving the notice, request a meeting with City Manager, at which CONTRACTOR may present evidence in writing and through testimony of its employees and others relevant to the incident(s) / non-performance. City Manager will provide CONTRACTOR Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
32 with a written explanation of his or her determination on each incident(s) / nonperformance prior to authorizing the assessment of liquidated damages. mployees and others relevant to the incident(s) / non-performance. City Manager will provide CONTRACTOR with a written explanation of his or her determination on each incident(s) / non-performance prior to authorizing the assessment of liquidated damages.
C. CITY may assess liquidated damages for each calendar day or event, as appropriate, that CONTRACTOR is determined to be liable in accordance with this Agreement.
D. CONTRACTOR may appeal the decision of City Manager to the City Council by filing a written appeal to the City Clerk within ten (10) days after receiving City Manager’s decision. Within thirty (30) days of receiving CONTRACTOR’s written appeal, the City Council shall convene a public hearing at a regular meeting of the City Council and render a decision. The decision of the City Council shall be final.
13.2.5 TIMING OF PAYMENT
CONTRACTOR shall pay any liquidated damages assessed by CITY within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, CITY may proceed against any security required by this Agreement to obtain payment, deduct amounts due from funds it receives from the County Tax Assessor which would otherwise be due CONTRACTOR, and/or find CONTRACTOR in default and exercise its right terminate this Agreement as set forth herein.
13.3 CITY RIGHT TO TERMINATE
The CITY shall have the right to terminate CONTRACTOR's franchise and this Agreement upon CONTRACTOR's material breach of any of its obligations under this Agreement. The CITY's right to terminate shall be in addition to any other remedy provided in this Agreement or provided by law and shall include, but not be limited to, any of the events of default set forth in this Section.
The CITY's failure to specify an obligation in this Section does not preclude the CITY from later asserting that a breach of such obligation is material.
A. IF CONTRACTOR practices, or attempts to practice, any fraud or deceit upon the CITY.
B. Should the CONTRACTOR or any of its officers, directors, shareholders, subsidiaries, affiliates, employees or agents be or have been found guilty of felonious conduct related to the performance of this Agreement, or of felonious Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
33 conduct related to anti-trust activities, illegal transport or disposal of hazardous or toxic materials, or bribery of public officials, the CITY reserves the unilateral right to terminate this Agreement or to impose such other sanctions (which may include financial sanctions, temporary suspensions or any other condition deemed appropriate short of termination) as it shall deem proper. Such action shall be taken after CONTRACTOR has been given notice and opportunity to present evidence in mitigation. The term "found guilty" shall be deemed to include any judicial determination of guilt including, but not limited to, pleas of "guilty", "nolo contendere", "no contest" or "guilty to a lesser charge" entered as part of a plea bargain.
C. If CONTRACTOR fails to provide or maintain in full force and effect the workers' compensation or any other insurance coverage or performance bond required by this Agreement.
D. If CONTRACTOR willfully violates any orders or rulings of any regulatory body having jurisdiction over CONTRACTOR relative to this Agreement, provided that CONTRACTOR may reasonably contest any such orders or rulings by appropriate proceedings conducted in good faith, in which case no breach of this Agreement shall be deemed to have occurred.
E. If CONTRACTOR refuses to make any payments or to pay any penalties required to be made or paid by CONTRACTOR pursuant to this Agreement.
F. If CONTRACTOR ceases to provide solid waste management services as required under this Agreement overall or a substantial portion of its franchise area for a period of thirty (30) days, for any reason within the control of CONTRACTOR.
G. If CONTRACTOR violates the terms, conditions or requirements of the Desert Hot Springs Municipal Code or of the California Integrated Waste Management Act of 1989 or successor legislation, as they may be amended from time to time, or violates any order, directive, rule or regulation issued pursuant to the foregoing legislation, where the violation is not remedied within the time set in the written notice of the violation.
H. If CONTRACTOR refuses to provide CITY with required information, reports or test results in a timely manner as required by this Agreement.
I. If CONTRACTOR becomes insolvent, unable, or unwilling to pay its debts, or upon the appointment of a receiver to take possession of all or substantially all of the assets of CONTRACTOR, or upon a general assignment by CONTRACTOR Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
34 for the benefit of creditors, or upon any action taken by or suffered by CONTRACTOR under any insolvency or bankruptcy act.
13.4 NOTICEOFDEFAULT
CITY shall give CONTRACTOR written notice of CITY's intention to terminate this Agreement for violation of any of the provisions of Section 13.3 above. CITY's notice shall specify with reasonable particularity the nature of the default. CITY shall provide written notice of default but is not obligated to provide an opportunity to cure a violation of Subsection 13.3.A. CITY shall provide five (5) days notice of default and an opportunity for CONTRACTOR to present evidence in mitigation of a violation of Section 13.3.B. CITY shall provide five (5) days notice of default and opportunity to cure for violations of Sections 13.3.C through 13.3.E inclusive and shall give fifteen (15) days notice of default and opportunity to cure for violations of Sections 13.3.F through 13.3.I inclusive.
13.5 RIGHT TOCURE
If, within the applicable notice and opportunity to cure period established by Section 13.4 above, CONTRACTOR cures the default or initiates reasonable efforts and diligently proceeds to cure a default that cannot by its nature be completely cured within the applicable cure period, CITY may not terminate the Agreement.
13.6 CITY'S RIGHT TOPERFORM SERVICE
In addition to any and all other legal or equitable remedies, in the event that CONTRACTOR, for any reason whatsoever, fails, refuses or is unable to Collect, transport or deliver to the appropriate Disposal Facility any or all Solid Waste which it is required by this Agreement to Collect and transport, at the time and in the manner provided in this Agreement, for a period of more than five (5) days, and if, as a result thereof, Solid Waste should accumulate in the City to such an extent, in such a manner, or for such a time that the City Manager should find that such accumulation endangers or menaces the public health, safety or welfare, then the City Manager shall have the right, but not the obligation, without payment to CONTRACTOR, and with offset of any fees or income due CONTRACTOR pursuant to this Agreement, (1) to cause to be performed; such services itself with its own or other personnel without liability to CONTRACTOR; and/or (2) to take possession of any or all of CONTRACTOR's equipment and other property used or useful in the Collection and transportation of Solid Waste and to use such property at the expense of CONTRACTOR to Collect and transport any Solid Waste which CONTRACTOR would otherwise be obligated to Collect and transport pursuant to this Agreement.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
35 ARTICLE 14. INDEMNITY
14.1 INDEMNIFICATIONOFCITY
CONTRACTOR agrees to indemnify the CITY, its officers, agents and employees against, and will hold the CITY harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, ("claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work or services of CONTRACTOR, its agents, employees, subcontractors, or invitees, provided for in this Agreement, or arising from the negligent acts or omissions of CONTRACTOR hereunder, or arising from CONTRACTOR's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, whether or not there is concurrent passive or active negligence on the part of the CITY, its officers, agents or employees but excluding such claims or liabilities arising from the sole negligence or willful misconduct of the CITY, its officers, agents or employees, who are directly responsible to the CITY, and in connection therewith. The CONTRACTOR’s duty to defend and indemnify shall survive the expiration or earlier termination of this Agreement.
14.1.1 CONTRACTOR will defend, with counsel reasonably acceptable to the CITY, any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith.
14.1.2 CONTRACTOR will promptly pay any judgment rendered against the CITY, its officers, agents, or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work or services of CONTRACTOR hereunder; and CONTRACTOR agrees to save and hold the CITY, its officers, agents, and employees harmless therefrom.
14.1.3 In the event the CITY, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against CONTRACTOR for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work or services of CONTRACTOR hereunder, CONTRACTOR agrees to pay to the CITY, its officers, agents or employees, any and all costs and expenses incurred by the CITY, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees.
14.2 TAX LEVY INDEMNIFICATION.
CITY agrees to indemnify and defend CONTRACTOR, its officers, agents and employees against, and will hold the CONTRACTOR harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, ("claims or liabilities") that may be asserted or claimed by any person, firm or entity Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
36 arising out of or in connection with the pass-through payment by CITY to CONTRACTOR of service fees assessed to Residential Premises as a levy on the County property tax bill. CITY’s duty to defend and indemnify shall survive the expiration or earlier termination of this Agreement.
14.2.1 CITY will defend, with counsel reasonably acceptable to the CONTRACTOR, any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith.
14.2.2 CITY will promptly pay any judgment rendered against the CONTRACTOR, its officers, agents, or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work or services of CITY hereunder; and CITY agrees to save and hold the CONTRACTOR, its officers, agents, and employees harmless therefrom.
14.2.3 In the event the CONTRACTOR, its officers, agents, or employees is made a party to any action or proceeding filed or prosecuted against CITY for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work or services of CITY hereunder, CITY agrees to pay to the CONTRACTOR, its officers, agents or employees, any and all costs and expenses incurred by the CONTRACTOR, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees.
14.3 WASTEDIVERSIONINDEMNIFICATION
CONTRACTOR agrees to indemnify and hold harmless the Indemnitees against all fines and/or penalties imposed by the State of California based on CONTRACTOR’s failure to comply with waste diversion-related laws, regulations or permits issued or enforced by the State or caused or contributed to by CONTRACTOR’s failure to perform its waste diversion obligations under this Agreement. This indemnity obligation is subject to the limitations and conditions in Public Resource Code Section 40059.1 but is enforceable to the maximum extent allowable by that Section. This indemnity shall survive the termination or earlier expiration of this Agreement.
ARTICLE 15. INSURANCE
15.1 TYPES ANDAMOUNTSOFCOVERAGE
CONTRACTOR shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to CITY, during the entire term of this Agreement including any extension thereof, the following policies of insurance:
15.1.1 WORKERS’ COMPENSATION AND EMPLOYER’S LIABILITY
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
37 A policy of workers’ compensation coverage in an amount not less than the State statutory limits and employers’ liability insurance in an amount not less than One Million Dollars ($1,000,000.00) each accident for bodily injury by accident or One Million Dollars ($1,000,000.00) each employee for bodily injury by disease. CONTRACTOR waives all rights against CITY and its agents, officers, directors, and employees for recovery of damages to the extent these damages are covered by the workers compensation and employers liability or commercial umbrella liability insurance obtained by CONTRACTOR pursuant to this Agreement. CONTRACTOR shall obtain an endorsement equivalent to WC 00 03 13 to affect this waiver.
15.1.2 COMPREHENSIVE GENERAL LIABILITY.
A policy of comprehensive general liability (CGL), and if necessary, commercial umbrella liability insurance for insurance written on a per occurrence basis. The policy of insurance in an amount of not less than Nine Million Dollars ($9,000,000.00) each occurrence and general aggregate and Products/Completed Operations aggregate limits of liability coverage of not less than Nine Million Dollars ($9,000,000.00).
CGL insurance shall be written on ISO occurrence form CG 00 01 04 13 (or a substitute form providing equivalent coverage) and shall cover liability arising from premises, operations, products-completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract).
CITY shall be included as an insured under the CGL, using ISO additional insured endorsement CG 20 10 07/04 and CG 20 37 07/04 or a substitute providing equivalent coverage, and under the commercial umbrella, if any.
e providing equivalent coverage, and under the commercial umbrella, if any.
This insurance shall apply as primary insurance with respect to any other insurance or selfinsurance programs afforded to CITY. There shall be no endorsement or modification of the CGL to make it excess over other available insurance; alternatively, if the CGL states that it is excess or pro rata, the policy shall be endorsed to be primary with respect to the additional insured.
There shall be no endorsement or modification of the CGL limiting the scope of coverage for liability assumed under a contract.
CONTRACTOR waives all rights against CITY and its agents, officers, directors, and employees for recovery of damages to the extent these damages are covered by the commercial general liability or commercial umbrella liability insurance maintained pursuant to Article 15 of this Agreement. Insurer shall endorse CGL policy as required to waive subrogation against CITY.
Furthermore, the commercial general liability policy will contain a separation of insureds provision specifying that the policy will apply separately to the CITY and each additional insured against whom claim is made or suit is brought.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
38 15.1.3 AUTOMOBILE LIABILITY.
Automobile liability insurance and, if necessary, commercial umbrella liability insurance for owned, leased, hired, or borrowed automobiles in an amount not less than Ten Million Dollars ($10,000,000.00) combined single limit bodily injury and property damage for each accident.
Coverage as required in paragraph 1.2 above shall be written on ISO form CA 00 01, CA 00 05, CA 00 25, or a substitute form providing equivalent liability coverage.
Pollution liability coverage at least as broad as that provided under the ISO pollution liability—broadened coverage for covered autos endorsement (CA 99 48) shall be provided, and the Motor Carrier Act endorsement (MCS 90) shall be attached.
CONTRACTOR waives all rights against CITY and its agents, officers, directors, and employees for recovery of damages to the extent these damages are covered by the automobile liability or commercial umbrella liability insurance obtained by CONTRACTOR pursuant to this Agreement.
15.1.4 SELF INSURED RETENTION
The liability policies described in Article 15 may contain self-insured retentions. The selfinsured retentions may not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) per occurrence.
15.2 GENERAL INSURANCE PROVISIONS
15.1.1 All of the above policies of insurance shall be primary insurance and shall name the CITY, its officers, employees and agents as additional insureds. The insurer shall waive all rights of subrogation and contribution it may have against the CITY, its officers, employees and agents and their respective insurers. All of said policies of insurance shall provide that said insurance may not be amended or canceled without providing thirty (30) days prior written notice by registered mail to the CITY. In the event any of said policies of insurance are canceled, the CONTRACTOR shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section
15.3.1 to the City Manager. No work or services under this Agreement shall commence until the CONTRACTOR has provided the CITY with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the CITY.
15.1.2 CONTRACTOR agrees that the provisions of this Article 15 shall not be construed as limiting in any way the extent to which the CONTRACTOR may be held responsible for the payment Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
39 of damages to any persons or property resulting from the CONTRACTOR's activities or the activities of any person or persons for which the CONTRACTOR is otherwise responsible.
15.1.3 The insurance policies required by this Agreement shall be satisfactory only if issued by companies qualified to do business in the State of California rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VIII or better, unless such requirements are waived by the City Manager.
15.3 VARIATION
The CITY may approve a variation in the foregoing insurance requirements, upon a determination that the coverages, scope, limits, and forms of such insurance are either not commercially available or that the CITY’s interests are otherwise fully protected.
15.4 NOTICES
Any notice required under this Article 15 shall be sent to:
City Manager
City of Desert Hot Springs
65-950 Pierson Boulevard
Desert Hot Springs, California 92240
ARTICLE 16. PERFORMANCE BOND
16.1 GENERAL
Concurrently with execution of this Agreement, CONTRACTOR shall deliver to CITY a performance bond in the sum of the amount of One Hundred Thousand Dollars ($100,000.00) specified in Desert Hot Springs Municipal Code 8.04.050 (D), which secures the faithful performance of this Agreement, including without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement, unless such requirement is waived by the City Manager. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void only if the CONTRACTOR promptly and faithfully performs all terms and conditions of this Agreement.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
40 ARTICLE 17. OTHER AGREEMENTS OF THE PARTIES
17.1 MERGER ANDINTEGRATION
This Agreement and the Attachments attached hereto contain the entire agreement of the parties with respect to the subject matter of this Agreement, and supersede all prior negotiations, agreements, and understandings with respect thereto. This Agreement may only be amended by a written document duly executed by all parties.
17.2 JURISDICTION
This Agreement shall be interpreted under the laws of the State of California. Any litigation under this agreement shall be resolved in the trial courts of Riverside County, State of California.
17.3 SEVERABILITY
If any provision of this Agreement is held unenforceable by a court of competent jurisdiction, then such provision will be modified to reflect the parties’ intention. All remaining provisions of this Agreement shall remain in full force and effect.
17.4 NON-WAIVER
The failure of one party to require performance of any provision shall not affect that party’s right to require performance at any time thereafter, nor shall a waiver of any breach or default of this Agreement constitute a waiver of any subsequent breach or default or a waiver of the provision itself.
ARTICLE 18. ADDITIONAL AGREEMENTS OF PARTIES
18.1 RELATIONSHIPOF PARTIES; INDEPENDENTCONTRACTOR
The parties intend that CONTRACTOR shall perform the services required by this Agreement as an independent contractor engaged by CITY and not as an officer or employee of CITY, nor as a partner of or joint venturer with CITY. No employee of CONTRACTOR shall be deemed to be an employee or agent of CITY. Except as expressly provided herein, CONTRACTOR shall have the exclusive control over the manner and means of conducting the services performed under this Agreement, and over all persons performing such services. CONTRACTOR shall be solely responsible for the acts and omissions of its officers, employees, subcontractors, and agents. Neither CONTRACTOR, nor its officers, employees, subcontractors, and agents, shall Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
41 obtain any rights to retirement benefit, workers’ compensation benefits, or any other benefits which accrue to CITY employees by virtue of their employment with CITY.
18.2 COMPLIANCE WITHLAW
In providing the services required under this Agreement, CONTRACTOR shall at all times comply with all applicable laws of the United States, the State and CITY, with all applicable regulations promulgated by federal, state, regional or local administrative and regulatory agencies, and by CITY, now in force and as they may be enacted, issued or amended during the Term, and with all permits affecting the services to be provided.
18.3 CHANGEOFOWNERSHIP
The CITY, in entering into this Agreement, has placed a special value, faith and confidence in the experience, background and expertise of the CONTRACTOR in the field of waste disposal.
Such faith and confidence being a substantial consideration in the granting of this Agreement, the Parties therefore agree that no change of ownership or control or transfer of stock in the CONTRACTOR's business to any person, firm or entity shall take place without the prior written consent of the CITY, except as provided herein. The CITY's consent shall be based upon the prospective owner's financial capability, background, reputation, experience, and expertise in the field of waste disposal and shall not be unreasonably withheld.
18.3.1 EXISTING SHAREHOLDERS
Prior to the Effective Date of this Agreement, CONTRACTOR shall provide City Manager a written statement identifying CONTRACTOR’s current owners.
18.3.2 TRANSFERS AMONG EXISTING SHAREHOLDERS
Any transfer of ownership interests among existing shareholders or to the Company may occur without the approval of CITY. CONTRACTOR shall be obliged to inform City Manager of a transfer of ownership interests among existing shareholders or the Company within ten (10) days of the effective date of such transfer.
18.3.3 TRANSFER TO IMMEDIATE FAMILY MEMBERS
Any transfer of ownership interests to an immediate family member of an existing shareholder may occur without the approval of CITY. CONTRACTOR shall be obliged to inform City Manager of a transfer of ownership interests to immediate family members of an existing shareholder within ten (10) days of the effective date of such transfer, except that in the event of the demise of an existing shareholder, CONTRACTOR’s notice to CITY shall be due within thirty (30) days of the effective date of such transfer to immediate family members related thereto.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
42 18.3.4 CORE MANAGEMENT EMPLOYEES
In addition, during the term of this agreement, CONTRACTOR shall not replace the members of its core group of management employees or advisors, who are identified as Michael Jaycox, Rick Wade, and Chris Cunningham, without prior written consent of the CITY, which shall not be unreasonably withheld. To assist CITY in determining whether to grant its consent, as required by this Section, CONTRACTOR shall provide CITY with reasonable information concerning the knowledge, experience, and background of any proposed addition to CONTRACTOR’s core group of management employees or advisors.
18.4 SUCCESSORS ANDASSIGNS
18.4.1 ASSIGNMENT BY CONTRACTOR
Except as provided for in Section 18.3, this Agreement shall not be assigned in whole or in part by CONTRACTOR without the prior written consent of the CITY. The CITY's consent shall be based upon the factors set forth in Section 18.3 above and shall not be unreasonably withheld.
18.4.2 ASSIGNMENT BY CITY
This Agreement, together with CITY’s duties, responsibilities, rights, and privileges hereunder, shall be assigned to the County of Riverside effective upon CITY’s disincorporation, dissolution, suspension of operations, or default. CONTRACTOR hereby consents to the assignment of This Agreement to County. Except for an assignment to County, this Agreement shall not be assigned without CONTRACTOR’s prior written consent.
18.4.3 BINDING ON SUCCESSORS
The provisions of this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the Parties.
18.5 SUBCONTRACTING
This Agreement, or any portion thereof, shall not be subcontracted except with the prior written consent of the CITY which shall not be unreasonably withheld. No such consent shall be construed as making the CITY a party to such subcontract or subject the CITY to liability of any kind to any subcontractor. CONTRACTOR shall submit all subcontracts for review and approval by the CITY and any permitted subcontract shall terminate on or before the termination of this Agreement.
18.5.1 AFFILIATED ENTITY
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
43 CONTRACTOR retains the right to enter into an arrangement with an Affiliated entity to perform any of the services, activities or administration of services or activities which CONTRACTOR is required or allowed to perform under this Agreement. Any arrangement by CONTRACTOR with an Affiliated entity shall neither be considered as subcontracting nor as an assignment.
18.6 DISPUTES BETWEENPARTIES
Should either Party be dissatisfied with any action, inaction, report, finding, decision, or matter of discretion of the other, except for a material breach of the Agreement by CONTRACTOR and issues of CONTRACTOR’s performance addressed in Section 13.2, the aggrieved Party shall notify the other in writing, within ten (10) days of the aggrieved event, setting forth their understanding of the facts, rights or claims and reasons for objecting. Within 15-days following such notification, the Parties shall meet in good faith in an administrative review conducted by the City Manager to resolve the matter to the reasonable satisfaction of both Parties. Should the parties fail to reach an agreement on the disputed matter within ten (10) days, the aggrieved Party, (a) if the CONTRACTOR, may request a review hearing before the City Council to be conducted within twenty (20) days of the request for a review hearing, or (b) if the CITY, shall schedule a review hearing before the City Council to be conducted within twenty (20) days of the administrative review. The decision of the City Council at the review hearing shall be binding.
18.7 FORCE MAJEURE
CONTRACTOR shall not be in default under this Agreement in the event that the services to be provided by CONTRACTOR are temporarily interrupted or discontinued for any of the following reasons: (a) riots, wars, sabotage, civil disturbances, insurrections, and explosion; (b) natural disasters such as floods, earthquakes, landslides, and fires; (c) strikes, lockouts, and other labor disturbances; or (d) other catastrophic events, including pandemic, which are beyond the reasonable control of CONTRACTOR. The term “other catastrophic events” does not include the financial inability of CONTRACTOR to perform or failure of CONTRACTOR to obtain any necessary permits or licenses from other governmental agencies or the right to use the facilities of any public utility where such failure is due solely to the acts or omissions of CONTRACTOR.
ARTICLE 19. MISCELLANEOUS PROVISIONS
19.1 PARTIES ININTEREST
Nothing in this Agreement is intended to confer any rights on any Persons other than the parties to it and their permitted successors and assigns.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
44 19.2 NON-LIABILITYOFCITY’SOFFICERS ANDEMPLOYEES
No officer or employee of the CITY shall be personally liable to CONTRACTOR, or any successor in interest, in the event of any default or breach by the CITY or for any amount which may become due to CONTRACTOR or to its successor, or for breach of any obligation of the terms of this Agreement.
19.3 WAIVER
The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach or violation of the same or any other provision.
19.4 ATTACHMENTS
Each of the Attachments, identified as Attachments “A” through “K”, is attached hereto and incorporated herein and made a part hereof by this reference. In the event of a conflict between the language of the Agreement and the language of an Attachment, the Attachment shall prevail.
19.5 ENTIRE AGREEMENT
This Agreement, including the Attachments, represents the full and entire agreement between the parties with respect to the matters covered herein and supersedes all prior negotiations and agreements, either written or oral.
19.6 SECTIONHEADINGS
The article headings and section headings and table of contents in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions.
19.7 INTERPRETATION
This Agreement shall be interpreted and construed reasonably and neither for nor against either party, regardless of the degree to which either party participated in its drafting.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
45 19.8 AMENDMENT
This Agreement may not be modified or amended in any respect except by a writing signed by the parties.
19.9 COSTS ANDATTORNEY’S FEES
The prevailing party in any action brought to enforce the terms of this Agreement or arising out of this Agreement may recover its reasonable costs, reasonable attorney’s fees, expert witness fees and arbitration fees and costs in addition to any other relief and recovery ordered by the arbitrator or other tribunal hearing any matter related to this Agreement.
19.10 REFERENCE TOLAWS
All references in this Agreement to laws and regulations shall be understood to include such laws and regulations as they may be subsequently amended or recodified, unless otherwise specifically provided. In addition, references to specific governmental agencies shall be understood to include agencies that succeed to or assume the functions they are currently performing.
19.11 EQUALOPPORTUNITY EMPLOYMENT
CONTRACTOR represents that it is an equal opportunity employer and shall not discriminate against any subcontractor, employee, or applicant (“person”) for employment because of race; denial of family and medical care leave; religious creed (including religious dress and grooming practices); color; national origin (including language use restrictions); ancestry; physical disability or mental disability (including HIV and Aids); medical condition (cancer and genetic characteristics); genetic information; military or veteran status; marital status; gender, gender identity, and gender expression; sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding); age or sexual orientation. Unless otherwise permitted under the law, CONTRACTOR shall not refuse to hire or employ any such person or refuse to select any such person for a training program leading to employment, or bar or discharge any such person from employment or from a training program leading to employment, or otherwise discriminate against any such person in compensation or in terms, conditions, or privileges of employment.
19.12 NOTICES
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
46 All notices, demands, requests, approvals, disapprovals, proposals, consents, or other communications which this Agreement authorizes, requires, permits, or contemplates either Party to give to the other, shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, addressed to the respective Party as follows:
To CITY:
City Manager
City of Desert Hot Springs
65-950 Pierson Boulevard
Desert Hot Springs, CA 92240
To CONTRACTOR:
President
Desert Valley Disposal, Inc.
4690 East Mesquite Avenue
P.O. Box 2720
Palm Springs, CA 92263
With copy to:
Robert W. Kuznik
ATTACHMENTS
A. Definitions
B. General Scope of Collection Services
C. SB 1383 Scope of Services
D. Debris Abatement Scope of Services
E. CONTRACTOR Rules & Regulations
F. Preferred C&D Waste Hauler Scope of Services
G. City Facilities & Events
H. Designated Solid Waste Facilities
I. Schedule of Maximum Rates
J. Rate Adjustment Procedure
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
47 K. County Property Tax Roll Billing Procedure
Signature page follows.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
48 IN WITNESS WHEREOF, the parties hereto do hereby set their hands and seals as of the day and the year first written above.
CITY OF DESERT HOT SPRINGS CONTRACTOR:
By: _________________________ By: _________________________ Frank Luckino, City Manager Rick Wade, Chief Executive Officer Desert Valley Disposal, Inc.
ATTEST:
By: _________________________ By: _________________________ Jerryl Soriano, City Clerk Chris Cunningham, President
Desert Valley Disposal, Inc.
APPROVED AS TO FORM:
By: _________________________
Tuan-Anh Vu, City Attorney
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
49 ATTACHMENT A. DEFINITIONS
When used in this Agreement, the following terms shall have the meanings described below.
Accepted Materials
“Accepted Materials” means Solid Waste materials that are accepted by contractor for recycling.
Act
“Act” means the California Integrated Waste Management Act of 1989 (AB939) California Public Resources Code, Section 40000 et seq. as currently in force or as hereafter amended.
Agreement
“Agreement” means this Franchise Agreement between the City of Desert Hot Springs and Desert Valley Disposal, Inc. for solid waste collection services, including the attachments.
Annual Report
“Annual Report” means the written report required by California Health and Safety Code Section 5473 to place a levy on the County property tax bill which shall include a description of each property, the amount of the levy for each property and other applicable information.
Annual Report to CalRecycle
“Annual Report to CalRecycle” means that yearly account of CITY’s progress in achieving the requirements of California Public Resources Code Section 41821.
AB 341
“AB 341” means AB 341 (Chapter 476, Statutes of 2011) as amended, supplemented, superseded, and replaced from time to time.
AB 939
“AB 939” means AB 939 (Chapter 1095, Statutes of 1989) also known as the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq.), as amended, supplemented, superseded, and replaced from time to time.
Item Number: 16.
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50 AB 1826
“AB 1826” means AB 1826 (Chapter 727, Statutes of 2014), as amended, supplemented, superseded, and replaced from time to time.
Billing
“Billing” means statements of charges for services rendered by CONTRACTOR, to Owners or Occupants of property, including Residential, Commercial and Industrial Premises, for the Collection of Solid Waste, Recyclable Materials, Organic Materials, and other materials Collected pursuant to this Agreement whether billed by CONTRACTOR or CITY.
Bin
“Bin” or “Commercial Bin” means a 2-, 3-, or 4-cubic yard capacity metal or plastic Container, equipped with lids and usually equipped with casters, designed for the storage and Collection of Solid Waste for Disposal or Processing.
Blue Container
“Blue Container” has the same meaning as in 14 CCR Section 18982.2(a)(5) and shall be used for the purpose of storage and Collection of Source Separated Recyclable Materials.
Brown Container
“Brown Container” has the same meaning as in 14 CCR Section 18982.2(a)(5.5) and shall be used for the purpose of storage and Collection of Source Separated Food Waste.
Bulky Items
“Bulky Items” or Bulky Waste” means discarded furniture (including chairs, sofas, mattresses, carpet, and other similar items); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances, and other similar items, commonly known as “white goods”); Electronic Waste; wood wastes (including wood waste, tree trunks, and large branches if no more than two (2) feet in diameter, four (4) feet in length, and 150 pounds in weight per bundle, scrap wood, in the aggregate not exceeding one (1) cubic yard per Collection unless Contractor allows heavier or larger-sized items); clothing; and automobile and light truck tires (removed from rims). Any Bulky Items containing chlorofluorocarbon (CFC) refrigerants shall be handled in accordance with Applicable Law. Bulky Items do not include car bodies or C&D, or any other items that cannot be handled by two (2) Persons. Bulky items do not include items more Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
51 than eight (8) feet in length, four (4) feet in width, or weighing more than 150 pounds. Bulky Items do not include abandoned automobiles, large auto parts, or trees.
Business Sector
“Business Sector” means the subdivision of CONTRACTOR’s trade with either Residential, Commercial or Industrial Premises.
Calendar Year
“Calendar Year” means the twelve-month period beginning January 1 and ending December 31.
Calendar Quarter
“Calendar Quarter” means the three-month periods beginning January 1, April 1, July 1 and October 1.
California Code of Regulations
“California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR, Division 7, Chapter 12” refers to Title 14, Division 7, Chapter 12 of the California Code of Regulations).
CalRecycle
“CalRecycle” means the California Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations on jurisdictions and other regulated entities, or its successor.
City Waste Diversion Fee
“City Waste Diversion Fee” means a pass-through fee collected by CONTRACTOR and paid to CITY for its costs for enacting regulations, designing programs, conducting outreach and education, monitoring, reporting, and enforcing State regulations related to Solid Waste.
Cart
“Cart” means a heavy plastic container with a rated capacity of at least thirty-two (32) gallons and not more than ninety-six (96) gallons, having a hinged, tight-fitting lid and wheels, that is approved Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
52 by the Contract Administrator for use by service recipients for Collection Services under this Agreement.
CITY
“CITY” means the City of Desert Hot Springs.
City Facility
“City Facility” means any building or land owned or leased by the CITY and whose normal use is operated for a public purpose and not operated as a public enterprise. For the purposes of this Agreement the following examples would not be deemed a City Facility for which free service would be provided: (i) a building owned by the CITY and occupied by one or more privately-owned business establishments (not a public purpose), (ii) a municipal golf course for which user fees are charged or a water treatment facility for which user fees are charged (a public enterprise), and (iii) debris and waste generated from the demolition, construction, remodeling or renovation of a City Facility (not a normal use).
City Manager
“City Manager” means the City Manager of the City of Desert Hot Springs or his/her designee.
City Franchise Fee
“City Franchise Fee” or “Franchise Fee” means CONTRACTOR’s payment to CITY for the right to enter and use CITY property, including CITY streets, roads, and rights-of-way for the performance of this Agreement, and for the cost of administering the Agreement as provided for in Section 11.4.
City’s Administrative Cost
“City’s Administration Cost” means those costs incurred by CITY for the administrative review, legal review, public notice, and administrative handling for the placement of a tax levy or tax lien on the County property tax bill.
Collect
“Collect”, “Collected” or “Collection” means the act of the CONTRACTOR taking physical possession of and removing discarded Solid Waste, Recyclable Materials, Organic Waste, or other materials, whether by manual, semi-automated or automated means, and transporting such materials to the Approved Facility, pursuant to this Agreement.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
53 Commercial
“Commercial” means a business activity including, but not limited to, retail sales, wholesale sales, services, research and development, government, education, non-profit, hospital, manufacturing, institutional and industrial operations, but excluding businesses conducted upon Residential Property that are permitted under applicable zoning regulations and are not the primary use of the property. Commercial Collection includes service provided to Multi-Family Dwelling Customers and City Facilities.
Commingle
“Commingle” means to mix, mingle, or combine Recyclable Materials in a Collection Container.
Commercial Sector
“Commercial Sector” means that segment of Contractor’s collection service collected in bins which may include Multi-Family dwellings as well as Commercial establishments.
Community Composting
“Community Composting” means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 CCR Section 17855(a)(4); or as otherwise defined in 14 CCR Section 18982(a)(8).
Compactor
“Compactor” or “Stationary Compactor” means an enclosed Container of 20 to 40-cubic yard capacity with a mechanical apparatus that compresses and holds materials and that is designed for the compaction, storage and removal of Refuse or Recyclables for disposal or processing and is serviced by a roll-off Collection vehicle.
Construction, Demolition, and Inert Debris
“Construction, Demolition, and Inert Debris”, “CDI Debris”, “Construction and Demolition Material”, “C&D Material”, “Construction and Demolition Waste” and “C&D Waste” means those materials remaining from the demolition, construction, repair, remodeling or rehabilitation of structures and improvements to property.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
54 Consumer Price Index
“Consumer Price Index” and “CPI-U” means the Consumer Price Index for All Urban Consumers for the Riverside-San Bernardino-Ontario, CA area (Series Id. CUURS49CSA0,CUUSS49CSA0 not seasonally adjusted), or its successor index, as published by the U.S. Bureau of Labor Statistics.
Container
“Container” means a Cart, Commercial Bin, Debris Box or Stationary Compactor.
Contamination Threshold
“Contamination Threshold” means the maximum percentage of Prohibited Materials permitted in Containers.
Contracting Fee
“Contracting Fee” means that fee paid by CONTRACTOR to reimburse CITY for costs it incurred in connection with entering this Agreement.
CONTRACTOR
“CONTRACTOR” means Desert Valley Disposal, Inc.
Contractor’s Collection Cost
“Contractor’s Collection Cost” means those expenses incurred by CONTRACTOR for notices and administrative handling for the referral of delinquent accounts to CITY for collection as a lien on the County property tax bill.
Contractor’s Fiscal Year
“Contractor’s Fiscal Year” means the twelve (12) month period beginning October 1st and ending September 30th.
County
“County” means the County of Riverside.
County Property Tax Bill
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
55 “County Property Tax Bill” means that annual billing to owners of real property by the County of Riverside on behalf of local government entities based upon the assessed value of the property, property tax rate, assessments, and exemptions.
Curbside
“Curbside” means adjacent to the street or roadway regardless of whether an actual curb exists.
Customer
“Customer” means the Person to whom CONTRACTOR (or CITY if CITY bills directly) submits billing invoices for Collection services provided to a Premise. The Customer may be the Occupant or Owner of the Premises provided that the Owner of the Premises shall be responsible for payment of Collection services if an Occupant of the Premises fails to make such payment.
Debris Box
“Debris Box” or “Roll-Off Box” means an open top Container with a typical capacity of 10 to 40- cubic yard capacity that is designed for the storage and removal of Refuse or Recyclables for disposal or processing and is serviced by a roll-off Collection vehicle.
Designated Disposal Facility
“Designated Disposal Facility” means the Disposal Facility designated by CONTRACTOR for Disposal of Solid Waste Collected by Contractor under the terms of this Agreement.
Disabled Person
“Disabled Person” means those meeting the California Department Motor Vehicle requirement for N1-Permanent disabled parking placard.
Disaster Debris
“Disaster Debris” means building debris, personal effects, household items, Bulky Items, vegetation, and the like resulting from an event including, but not limited to, wildfire, landslide, earthquake, flood, high wind event, or act of terrorism, Collected as uncontained waste. Disaster Debris does not include hazardous waste, toxic substances, liquid waste, vehicles, or vehicle components.
Disposal
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
56 “Disposal” means the ultimate disposition of Solid Waste Collected by CONTRACTOR at a Disposal Facility.
Disposal Facility
“Disposal Facility” means the facility or facilities utilized for the landfill Disposal of Solid Waste Collected under the terms of this Agreement including a transfer station.
Disposal Facility Operator
“Disposal Facility Operator” means the Person hired or contracted to manage and run a permitted Disposal Facility.
Diversion
“Diversion” (or any variation thereof including “Divert”) means activities which reduce or eliminate Discarded Materials from Disposal, including, but not limited to, source reduction, Reuse, salvage, Recycling, and composting.
Dwelling
“Dwelling” or “Household” means any Residential unit.
Edible Food
“Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible Food is not Solid Waste if it is recovered and not discarded.
Effective Date
“Effective Date” means the effective date of this Agreement, July 1, 2024.
Electronic Waste
“Electronic Waste” or “E-Waste” means “Covered Electronic Wastes” as defined in the Act (Section 42463 of Public Resources Code) in addition to discarded electronic equipment such as, but not limited to, television sets, computer monitors, central processing units (CPUs), laptop computers, and peripherals (e.g., external computer hard drives, computer keyboards, computer mice, and computer printers).
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
57 Emergency Collection Service
“Emergency Collection Service” means the curbside collection by CONTRACTOR from Residential Premises of Disaster Debris including but not limited to wildfire, landslide, earthquake, flood, high wind event, or act of terrorism when a CITY-declared State of Emergency has been declared.
Enforcement Inspection
“Enforcement Inspection” means a comprehensive examination of a Solid Waste Container(s) by CONTRACTOR performed under the direct supervision of the CITY intended to document excessive contamination or persistent non-participation as part of a CITY code enforcement action.
Excluded Waste
“Excluded Waste” means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste, volatile, corrosive, Medical Waste, infectious, regulated radioactive waste, and toxic substances or material that Approved Facility operator(s) reasonably believe(s) would, as a result of or upon acceptance, Transfer, Processing, or Disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be Disposed of in Class III Landfills or accepted at the Facility by permit conditions, waste that in CONTRACTOR’S reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose CONTRACTOR or CITY to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe Collection, Processing, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code.
Facility
“Facility” or “Facilities” means any plant, site, or operation used for the purpose of handling Discarded Materials, including, but not limited to, Disposal, Transfer, Recycling, Composting, and Processing Facilities or operations.
Fixed Charge Paid List
“Fixed Charge Paid List” means that report prepared by County or from County data identifying all parcels that have paid the current year levy or lien placed on the County property tax bill provided for in Attachment K.
Fixed Charge Unpaid List
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
58 “Fixed Charge Unpaid List” means that report prepared by County or from County data identifying all parcels that have not paid the current year levy or lien placed on the County property tax bill provided for in Attachment K.
Food Scraps
“Food Scraps” or “Food Waste” means a subset of Organic Materials including: (i) all kitchen and table food waste, and animal or vegetable fruit, grain, dairy or fish waste that attends or results from the storage, preparation, cooking, or handling of foodstuffs, with the exception of animal excrement, (ii) paper waste contaminated with putrescible material, and (iii) certified biodegradable fiber-based foodware.
Franchise Area
“Franchise Area” and “Service Area” means the area within CITY as its boundaries now exist or as they may be expanded by annexation with respect to which CITY exercises franchising authority for the Collection of Solid Waste or other materials pursuant to this Agreement.
Franchise Fee
“Franchise Fee” means the fee paid by CONTRACTOR to CITY pursuant to Section 11.4 to compensate CITY for the right to enter and use CITY property, including city streets, roads, and rights-of-way for the performance of this Agreement, and for the cost of administering this Agreement.
Generator
“Generator” means the owner or occupant of a premises, including residences or businesses, which initially produces Solid Waste, including Recyclable Material and Organic Waste.
Gray Container
“Gray Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Gray Container Waste.
Gray Container Waste
“Gray Container Waste” means Solid waste that is collected in a Gray Container as specified in 14 CCR Sections 18984.1(a) and (b), or ass otherwise defined in CCR Section 17402(a)(65). [Gray Container Waste may specifically include carpet and textiles.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
59 Green Container
“Green Container or Lid” has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used for the purpose of storage and Collection of Source Separated Green Container Organic Waste (SSGCOW) including limited amounts of Food Scraps provided that the Food Scraps are separately bagged.
Green Waste
“Green Waste” or “Yard Trimmings” means types of SSGCOW resulting from normal yard and landscaping installation, maintenance, or removal that the Generators Source Separate and set out in Green Containers for Collection for the purpose of Processing by the Contractor. The accepted types of Green Waste and process for modifying the accepted types of Green Waste are specified in this Agreement.
Gross Billings
“Gross Billings” means the total amount invoiced to Customers by CONTRACTOR for the provision of Services pursuant to this Agreement, with a year-end adjustment for any account written off as uncollectible. Gross Billings do not include revenues from the sale of Recyclable Materials, California Refund Value revenue, CalRecycle supplemental payments to registered curbside recycling operators, revenue from the sale of processed recycling or C&D material, payments from CITY for performance of the Debris Abatement program, and Weekly Bulky Waste Collection Program if paid for directly to CONTRACTOR by CITY.
Hauler Route
“Hauler Route(s)” means the designated itinerary or sequence of stops for each segment of the CITY’s collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).
Hauler Route Review
“Hauler Route Review” means visual inspections of select individual Residential or Commercial Containers for the obvious presence of Prohibited Materials, which may involve probing the contents with a poker including the opening of bags or boxes within the Container but does not include the removal of the contents of the Container to perform the inspection. Hauler Route Reviews are intended to satisfy the SB 1383 contamination monitoring requirement (Section 18984.5(b)).
Holidays
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
60 “Holidays” means New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Holiday Schedule
“Holiday Schedule” means the modified service schedule following a holiday.
Industrial
“Industrial” means Premises occupied by manufacturing operations or other industrial facilities.
Initial Term
“Initial Term” or “Original Term” means the original duration of the Agreement, July 1, 2024 through June 30, 2039, before any extension.
Large Event
“Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event. If the definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14 CCR Section 18982(a)(38) shall apply to this Agreement.
Large Venue
“Large Venue” means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operations of the venue facility.
For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39) shall apply to this Agreement.
Litter
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
61 “Litter” means loose or accumulated Solid Waste.
Master Billed Community
“Master Billed Community” means Residential premises within a planned unit development or other group of dwellings may authorize a homeowner's association, property manager, or agent to receive and pay the Solid Waste bill issued by CONTRACTOR as a master-billed account, provided all premises subject to the account subscribe to the same service. CONTRACTOR shall bill master billed accounts monthly in arrears. (Master billing is provided as a courtesy to the individual Residential customers and does not relieve them of their individual responsibilities to arrange and pay for solid waste management services.)
Material
“Material” or “Material Type” means kinds of Solid Waste including, but not limited to, Disposed waste, Mixed Recycling, Green Waste, Food Waste, and Organic Waste.
Material Cost Index
“Material Cost Index” means
Material Recovery Facility
“Material Recovery Facility” and “MRF” means a permitted facility where Solid Waste, Recyclable Materials, Organic Waste, and other materials are processed, sorted, or separated for the purposes of recovering for further processing or reuse.
Multi-Family
“Multi-Family,” “Multi-Family Dwelling,” “MFD,” or “Multi-Family Service Unit” means premises used for residential purposes with five (5) or more dwelling units, including condominium projects, duplexes, townhouse projects, apartment houses, or mobile home parks, irrespective of whether residence therein is transient, temporary, or permanent which receive collection services from centralized locations. Multi-Family premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses.
Non-Collection Notice
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
62 “Non-Collection Notice” means a form, as approved in advance by the CITY, used to notify a Service Recipient of the reason for the non-Collection of materials set out by the Service Recipient for Collection by the CONTRACTOR pursuant to this Agreement.
Notice of Termination of Annual Extension
“Notice of Termination of Annual Extension” means that written notification provided for in Section
4.3.1 served by either Party upon the other stopping the natural addition of another year to the Term of this Agreement as provided for in Section 4.3.
Notice of Termination of Debris Abatement Program
“Notice of Termination of Debris Abatement Program” means that written notification provided for in Attachment D served by either Party upon the other terminating the Debris Abatement Program as provided for in Attachment D.
Notice of Unsatisfactory Performance
“Notice of Unsatisfactory Performance” means that written notification to CONTRACTOR by City Manager of Section 13.2 alleging that Contractor’s performance is unsatisfactory.
Occupant
“Occupant” means a Person who occupies a Premise.
Operating Expenses
“Operating Expenses” means CONTRACTOR’s costs for City fees, solid waste tip fees. Collection labor, customer service labor, supervision labor, payroll taxes, workers compensation insurance, group health insurance, employee appreciation, yard expense, truck operating including maintenance labor, maintenance labor payroll burden, truck repairs, tires, fuel, licenses, insurance, damage repairs, truck leases, truck interest and depreciation, container expenses including repairs and purchases, delivery labor, delivery vehicle, container interest, container depreciation, contract amortization, personal property taxes, performance bonds, and operational consulting, and any other expense that would be normally allocated as an expense to operations not listed.
Organic Waste
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
63 “Organic Waste” means Solid Wastes containing material originating from living organisms and the metabolic waste products including, but not limited to, food, Yard Trimmings, organic textiles, and carpets, lumber, wood, Paper Products, Printing and Writing Paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
Owner
“Owner” means the Person holding legal title to the real property constituting the Premises to which Solid Waste, Recyclable Materials and/or Organic Materials Collection service is provided.
Parcel
“Parcel” means a contiguous quantity of land under the possession of an owner.
Party
“Party” and “Parties” means the CITY and CONTRACTOR, individually or together.
Pass-Through Cost
“Pass-Through Cost” means a cost to which no element of overhead, administrative expense, or profit, is added, such that the specific amount of such cost is included without modification in the calculations or reports prepared in implementing this Agreement.
Person
“Person” means any individual, firm, company, association, organization, partnership, corporation, trust, joint venture, the United States, the State, the County, towns, cities, or special purpose districts.
Preferred CDI Waste Hauler
“Preferred CDI Waste Hauler” and Preferred CDI Waste Hauler Program” means that program authorized by Desert Hot Springs Municipal Code Section 8.08.180 that provides owners and/or builders of certain projects to utilize the CITY’s exclusive franchise hauler to comply with the requirements of the California Building Code for diverting construction, demolition, and inert waste from landfill disposal.
Premises
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
64 “Premises” means any land or building where Solid Waste, Recyclable Materials or Organic Materials is generated or accumulated.
Processing Facility
“Processing Facility” or “Diversion Facility” means an establishment permitted, constructed and operated to accept and process Recyclable Materials, Organic Waste or Construction and Demolition Materials for Diversion.
Prohibited Container Contaminates
“Prohibited Container Contaminants” means the following: (i) discarded materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for Blue Containers; (ii) discarded materials placed in the Green Container that are not identified as acceptable Source Separated Green Container Organic Waste for Green Containers; (iii) discarded materials placed in the Brown Container that are not identified as acceptable Source Separated Brown Container Food Waste for Brown Containers; (iv) discarded materials placed in the Gray Container that are acceptable Source Separated Recyclable Materials, Source Separated Green Container Organic Wastes, and/or Source Separated Brown Container Food Waste to be placed in Blue Containers, Green Containers, and/or Brown Containers; and, (v) non-Solid Waste items placed in any container.
Project
“Project” means an undertaking to remove, build, repair, renovate or improve property within City.
Property Tax Bill
“Property Tax Bill” means the County of Riverside Property Tax Bill.
Proposal
“Proposal” means CONTRACTOR’s Proposal.
Proposition 218
“Proposition 218” means Articles XIII C and XIII D of the California Constitution.
Rate Adjustment Application
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
65 “Rate Adjustment Application” means that written notification to CITY by CONTRACTOR for changes to rates provided for in Section 12.4.
Rate Component
“Rate Component” means any one or a combination of the elements that make up the Rates for service contained in Attachment I, Rate Schedule, including Material Tip Fee Component, Collection Service Component, and such other elements as may be agreed by the Parties.
Rate Payer
“Rate Payer” means the owner or other individual or entity responsible for payment of rates and charges for Solid Waste Collection services.
Rate Revenue
“Rate Revenue” means CONTRACTOR’S income received from Customers for services provided in accordance with Exhibit 1. Rate Revenue does not include revenues from the sale of Recyclable Materials, California Refund Value revenue, CalRecycle supplemental payments to registered curbside recycling operators, revenue from the sale of processed recycling, compost, or C&D material, or miscellaneous income from non-Collection activities.
Rate Year
“Rate Year” means the twelve-month period July 1 of one Calendar Year and concluding June 30 of the next Calendar Year.
Reasonable Overhead and Profit
“Reasonable Overhead and Profit” shall mean the mean average the combined total of general and administrative expenses and net income before income taxes, expressed as a percent of total revenue, of the three largest US-based, publicly-traded solid waste companies deriving at least 50% of their total revenue from solid waste collection operations as reported in their income statement for the most recent complete fiscal year as reported to the US Securities and Exchange Commission.
Reasonable Profit
“Reasonable Profit” shall mean the mean average net income before income taxes, expressed as a percent of total revenue, of the three largest US- based, publicly-traded solid waste companies Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
66 deriving at least 50% of their total revenue from solid waste collection operations as reported in their income statement for the most recent complete fiscal year as reported to the US Securities and Exchange Commission.
Recyclable Material
“Recyclable Material” and “Recyclables” means Residential, Commercial or Roll-Off Source separated by-products of some potential economic value, set aside, handled, packaged, or offered for Collection in a manner different from other Solid Waste.
Refuse
“Refuse” means non-recyclable Gray Container waste.
Re-Investment Payment
“Re-Investment Payment” means that amount paid by Contractor to City for the Automatic Annual Extension as provided for in Section 11.3.
Residential
“Residential” means of, from, or pertaining to Single-Family Dwellings, and Multi- Family Residential complexes, including single-family homes, apartments, condominiums, townhouse complexes, mobile home parks and cooperative apartments.
Residential Sector
“Residential Sector” means that segment of CONTRACTOR’s collection service collected in carts which may include Multi-Family Dwellings and low volume Commercial establishments.
Roll-Off
“Roll-Off”, “Roll-Off Box” or “Roll-Off Services” means an open- or closed-top metal Container, roll-top Container, or closed compactor Container serviced by a roll-off truck and with a Container capacity of 10 to 40 cubic yards. Roll-off boxes are also known as drop boxes or debris boxes.
SB 1383
“SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Section 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
67 added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.
SB 1383 Regulations
“SB 1383 Regulations” or “SB 1383 Regulatory” refers to Short-Lived Climate Pollutants (SLCP):
Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR.
Service Area
“Service Area” means the city limits of the City of Desert Hot Springs as they currently exist or as they may be extended in the future by annexation.
Service Sector
“Service Sector” means the classifications of CONTRACTOR’s service offerings to Customers being Residential, Commercial, and Roll-Off.
Solid Waste
“Solid Waste” means all putrescible and non-putrescible solid, semisolid, and liquid wastes, as defined in California Public Resources Code Section 40191 including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes. For the purposes of this Agreement, “Solid Waste” does not include (i) abandoned vehicles and parts thereof, except passenger auto and other light duty vehicle tires, (ii) Hazardous Waste or low-level radioactive waste, (iii) medical waste, Source Separated Recyclable Materials, Source Separated Plant Materials, or Source Separated Organic Materials, sewage sludge, street sweepings.
Source-Separated
“Source Separated” means materials, including commingled Recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or Processing those materials for Recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
68 which meet the quality standards necessary to be used in the marketplace, or ass otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of this Agreement, Source Separated shall include separation of materials by the Generator, Property Owner, Property Owner’s employee, property manager, or property manager’s employee into different Containers for the purpose of Collection such that Source Separated materials are separated from Gray Container Waste and other Solid waste for the purposes of Collection and Processing.
Source-Separated Blue Container Organic Waste
“Source Separated Blue Container Organic Waste” or “SSBCOW” means Source Separated Organic Wastes that can be placed in a Blue Container that is limited to the collection of those Organic Wastes and Non-Organic Recyclables as defined in 14 CCR Section 18982(a)(43), or as otherwise defined in 14 CCR Section 17402(a)(18.7).
Source-Separated Brown Container Organic Waste
“Source Separated Brown Container Organic Waste” means Source Separated Food Scraps that can be placed in a Brown Container that is limited to the collection of Food Scraps and NonOrganic Recyclables as defined in 14 CCR Section 18982(a)(43), or as otherwise defined in 14 CCR Section 17402(a)(18.7).
Source-Separated Green Container Organic Waste
“Source Separated Green Container Organic Waste” or “SSGCOW” means Source Separate Organic Waste that can be placed in a Green Container that is specifically intended for the separate collection of Organic Waste by the Generator, excluding Source Separated Blue Container Organic Waste, carpets, Non-Compostable Paper, and textiles. Green Container Organic Waste may include limited amounts of Food Scraps provided that they are separately bagged.
State
“State” means the State of California.
Stationary Compactor
“Stationary Compactor” means an enclosed detachable Container with a typical capacity of 10- to 40-cubic yards attached to a compaction unit that is designed for the storage and removal of Solid Waste for disposal or processing and is serviced by a Roll-Off Collection vehicle.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
69 Subcontractor
“Subcontractor” means a Person, which has entered into a contract with the CONTRACTOR for the performance of work that is necessary for the CONTRACTOR’s fulfillment of its obligations under this Agreement.
Tax Roll Billing
“Tax Roll Billing” means the billing of Solid Waste services on the County of Riverside Property Tax Bill.
Term
“Term” means the term of this Agreement, including extension periods.
Tip Fee
“Tip Fee”, “Tipping Fee” or “Material Tip Fee” means the charge levied by the operator of a Disposal Facility, Transfer Facility, or Processing Facility for the handling, Processing, or dumping of Solid Waste materials by CONTRACTOR.
Ton
“Ton” or “Tonnage” means a unit of measure for weight equivalent to 2,000 pounds where each pound contains 16 ounces.
Transfer Station
“Transfer Station” means a Facility primarily used for the purpose of transferring Solid Waste from Collection vehicles to transfer vehicles (but which may include recovery operations) to more efficiently transport Solid Waste to the Disposal Facility or Diversion Facility. For the purposes of this Agreement, CONTRACTOR has selected the Edom Hill Transfer Station as its designated Transfer Station.
Two Pass Collection System
“Two Pass Collection System” means the use of the same Collection vehicle to collect Recyclables and Refuse in different passes over the same route.
Unacceptable Waste
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
70 “Unacceptable Waste” means any materials excluded from the definition of Solid Waste.
Undeveloped Property
“Undeveloped Property” means a parcel of land upon which no development or improvement has occurred.
Used Motor Oil
“Used Motor Oil” means used motor oil from automobiles and other light duty vehicles intended for personal use that is removed from cars at a Residential Premises and not as a part of a for-profit or other business activity.
Vacant Property
“Vacant Property” means a developed or improved parcel of land that is not occupied.
Walk-In Service
“Walk-In Service” means Residential Collection by CONTRACTOR from side yard or back yard of Customer, not more than 60 feet from Curbside.
Waste Diversion Report Fee
“Waste Diversion Report Fee” means that component of the rates of Attachment I retained by CONTRACTOR for handling State-mandated reporting and liaison with CalRecycle.
Waste Generator
“Waste Generator” means the person or premises that produces or accumulates solid waste.
End of Attachment.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
71 Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
72 ATTACHMENT B. GENERAL SCOPE OF SERVICES
This General Scope of Services describes the common solid waste management services of the Franchise Agreement.
CONTRACTOR shall provide the labor, equipment, supervision, supplies, and services to perform the services described herein. All services shall be performed at the rates and charges specified in the approved Rate Schedule.
A. REGULAR RESIDENTIAL COLLECTION SERVICES
1. Regular Residential Services
CONTRACTOR shall provide once weekly Collection of Source-Separated Solid Waste from Carts provided by CONTRACTOR to each attached Residential Dwelling unless Commercial Bin service has been arranged for the Dwelling. a. Single Family Dwelling. Each Single-Family Dwelling shall be provided:
i. One (1) 95-gallon Cart for Refuse.
ii. One (1) 95-gallon Cart for Mixed Recycling.
iii. One (1) 95-gallon Cart for Mixed Organic Waste.
b. Multi-Family Dwellings. Each Multi-Family Dwelling shall be provided:
i. One (1) 95-gallon Cart for Refuse.
ii. One (1) 95-gallon Cart for Mixed Recycling.
iii. One (1) 95-gallon Cart for Mixed Organic Waste.
2. Other Residential Services
CONTRACTOR shall perform additional Collections of waste upon request of Customer and subject to the additional charges specified in the approved Rate Schedule in Attachment I.
3. Residential Service Standard
At the time of collection, all Containers shall be accessible to CONTRACTOR and filled no more than level-full, with the lids fully closed. Containers not meeting the service standard shall be subject to the additional charges specified in the approved Rate Schedule
The size and number of Containers and the frequency of Collections to be determined by Customer and CONTRACTOR. If Customer and CONTRACTOR cannot agree, the CITY’s decision shall be final.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
73 B. REGULAR COMMERCIAL BIN COLLECTION SERVICES
1. Commercial Premises
a. CONTRACTOR shall provide the following services to Commercial Premises individually or in shared arrangements:
i. Refuse. One (1) to six (6) weekly Collections of Solid Waste from 2-, 3- or 4- cubic yard Bins provided by CONTRACTOR.
ii. Mixed Recycling. One (1) or more weekly Collections of Source-Separated commingled Recyclables from a 95-gallon Cart(s) or a 3-cubic yard Bin provided by CONTRACTOR.
iii. Food Waste or Mixed Organic Waste. One (1) or more weekly Collections of Source-Separated Food Waste from 35-gallon Carts or Mixed Organic Waste from 35- or 65-gallon Carts or 2- or 3-cubic yard Bins provided by CONTRACTOR.
2. Low Volume Commercial Premises
Commercial Premises that generate low volumes of Refuse, Mixed Recycling, and Organic Waste and that do not share Commercial Bins with other establishments, may arrange for the same regular individual Collection services as that provided to Single Family Dwellings.
3. Multi-Family Complexes
CONTRACTOR shall provide the following services to Multi-Family Complexes that subscribe to Bin service:
a. Refuse Service Standard. One (1) to six (6) weekly Collections of Solid Waste from 2-, 3- or 4-cubic yard Bins provided by CONTRACTOR with sufficient regularly scheduled weekly Bin pickup capacity equating to a minimum of one (1) cubic yard per Dwelling Unit served and subject to a requirement of increased service based on CONTRACTOR’s observation of need.
b. Mixed Recycling Service Standard. One (1) or more weekly Collections of SourceSeparated commingled Recyclables from 95-gallon Cart(s) or 3-cubic yard Bins provided by CONTRACTOR with sufficient regularly scheduled weekly pickup capacity equating to a minimum of one (1) cubic yard per Dwelling Unit. For purposes of meeting the service standard, each 95-gallon Cart is deemed equivalent to 1 cubic yard.
Customer may petition CONTRACTOR for a reduction in the Mixed Recycling service standard.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
74 c. Mixed Organic Waste Service Standard. One (1) or more weekly Collections of Source-Separated commingled Recyclables from 95-gallon Cart(s) or 3-cubic yard Bins provided by CONTRACTOR with sufficient regularly scheduled weekly pickup capacity equating to a minimum of one (1) cubic yard per Dwelling Unit. For purposes of meeting the service standard, each 95-gallon Cart is deemed equivalent to 1 cubic yard.
Customer may petition CONTRACTOR for a reduction in the Mixed Organic Waste service standard.
d. Service Standard Disputes. In the event of a dispute between Customer and CONTRACTOR over service standards, the CITY shall render a decision which shall be binding.
4. Commercial Service Standard
At the time of Collection, all Containers shall be accessible to CONTRACTOR and filled no more than level-full, with the lids fully closed. Containers not meeting the service standard shall be subject to the additional charges specified in the approved Rate Schedule
The size and number of Containers and the frequency of Collections to be determined by Customer and CONTRACTOR. If Customer and CONTRACTOR cannot agree, the CITY’s decision shall be final.
5. Special Commercial Services.
Upon request of the Customer, CONTRACTOR shall provide the following special Commercial services for the additional charges specified in the approved Rate Schedule:
a. Extra Collections. Perform extra Collections of Bins on the next regular workday upon 24-hour prior request by Customer.
b. Locks. Provide locking mechanisms and locks for Bin enclosures or Bins.
C. REGULAR ROLL-OFF SERVICES
1. Regular Roll-off Collection Services.
Upon request, CONTRACTOR shall provide the following services for the charges specified in the approved Rate Schedule:
a. Debris Box Service. 10-, 20-, 30- or 40-cubic yard open top Debris Boxes, 10-ton maximum load and subject to a 4-ton minimum load charge.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
75 b. Stationary Compactor Service. Hauling of a Customer-provided 20-, 30- or 40-cubic yard stationary compactor, 10-ton maximum load.
4. TEMPORARY COLLECTION SERVICES
Upon request, CONTRACTOR shall provide the following temporary services for the charges specified in the approved Rate Schedule.
1. Temporary Bin. Rental of an open top 3-cubic yard Bin for disposal of Solid Waste, Construction, Demolition, and Inert Waste prohibited.
2. Construction Bin. Rental of an open top 3-cubic yard Bin for the disposal of Construction, Demolition, and Inert Waste only; other Solid Waste prohibited.
3. Debris Box. Rental of an open top 10-, 20-, 30- or 40-cubic yard open top Debris Box for Disposal of Solid Waste or Construction, Demolition, and Inert Waste; mixing of other Solid Waste with Construction, Demolition, and Inert Waste is prohibited.
E. SPECIAL SERVICES
CONTRACTOR shall perform the following special services:
1. On-Call Bulky Waste Collection.
Contractor shall collect Bulky Waste, including Electronic Waste, curbside by special arrangement of Customer.
a. Residential Dwellings. Residential Dwellings and Multi-Family Dwellings receiving individual Cart service, shall be entitled to twelve (12) Bulky Items collected annually at no charge, limit two (2) Bulky Items per Collection. Collections of more than twelve (12) items per year or two (2) per Collection are subject to the additional charges of the approved Rate Schedule in Attachment I.
b. Multi-Family Dwellings with Bin Service. Multi-Family Dwellings with Bin service shall be provided Bulky Waste Collection in accordance with the approved Rate Schedule in Attachment I.
c. Commercial Premises. Commercial Premises, whether subscribing to Bin or Cart service, shall be provided Bulky Waste Collection and excess Refuse Collection in accordance with the approved Rate Schedule in Attachment I.
2. On-Call Used Motor Oil Collection
When pre-arranged, Contractor shall collect used motor oil curbside from Residential Customers up in leak-proof containers provided by Customer, limit 3-gallons per pickup.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
76 3. On-Call Used Tire Collection
When pre-arranged by Residential Customers, CONTRACTOR shall collect un-mounted automobile and light truck tires, limit of twelve (12) tires per household per year, with a limit four (4) tires per pick-up collected Curbside by special arrangement of Customer at no charge. This service is not available to Commercial Premises.
4. Scheduled Quarterly Clean-Up Events
CONTRACTOR will conduct four (4) Curbside clean-up events for Residential Customers receiving individual collection from Carts or Bins, including Multi-Family Dwellings, one each in the months of January, April, July, and October of each year collecting Bulky Waste, Electronic Waste, Yard Waste, and Excess Trash subject to the limitations described herein. The dates of quarterly clean-up events shall be approved by CITY.
Solid Waste to be collected must be contained or bundled and placed Curbside by 6 AM on the Monday of the clean-up event for Collection during that week on a day and time suited to CONTRACTOR.
the Monday of the clean-up event for Collection during that week on a day and time suited to CONTRACTOR.
Quarterly Clean-Ups shall be performed at no additional cost to CITY or Customers. a. Collections from individual dwellings shall be limited to:
• Two (2) Bulky Items, including Electronic Waste, limited to TWO items.
OR
• Contained Excess Trash, limited to FOUR (4) containers or bags.
OR
• Yard Waste, limited to TWO (2) bundles, containers, or bags.
OR
• A combination of the foregoing limited items.
b. Trash must be contained in plastic bags or Customer-provided Containers.
Containers and Yard Waste bundles shall weigh not more than 50-pounds.
5. Special Neighborhood Clean-Up Events
As requested by CITY, CONTRACTOR shall perform up to four (4) special one-day neighborhood clean-up collections per year on days and in neighborhoods specified by CITY.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
77 CONTRACTOR’s cost of these services shall be paid by CITY. Collections performed in conjunction with April and October quarterly clean-ups may be eligible for waiver of Disposal Tip Fees by County.
CONTRACTOR shall collect Bulky Waste, Electronic Waste, Yard Waste, and Excess Trash from within the boundaries of the designated neighborhood. Excess Trash must be contained in plastic bags or Customer-provided Containers. Yard Waste must be contained or bundled. Bundles and containers shall weigh not more than 50-pounds.
Materials to be collected must be placed Curbside by 6 AM on the Monday of the cleanup event for collection by CONTRACTOR. 50-pounds. Materials to be collected must be placed Curbside by 6 AM on the Monday of the clean-up event for collection by CONTRACTOR.
6. Scheduled Document Shredding Events
Twice annually, in the Spring and Fall, CONTRACTOR shall provide services of one shred truck for on-site document shredding at no charge for Residents of CITY. CITY shall approve dates and locations of the shredding events. Contractor may require reasonable evidence that Persons delivering documents are residents of CITY.
CONTRACTOR may limit the quantity of documents accepted from any one household to three (3) “bankers’ boxes” or other reasonable limit. CONTRACTOR shall deliver the shredded material to an appropriate recycling facility. This no cost service is not available to Commercial Premises.
7. On-Call Commercial Waste Audits
At Customer’s request, Contractor shall provide complimentary Commercial waste audits and recycling consultation, limit one per business establishment annually, for the purpose of maximizing diversion by reducing, reusing, or recycling waste materials.
8. CalRecycle Support
When requested by CITY, CONTRACTOR shall participate in meetings with CalRecycle representatives regarding CITY’s performance of State-mandated programs and reporting.
9. Annual Report to CalRecycle
CONTRACTOR shall prepare CITY’s Electronic Annual Report to CalRecycle. Other investigations, reports, and filings regarding Solid Waste capacity planning, compliance with CalRecycle rules and regulations, and reporting shall be the sole responsibility of the CITY.
F. CITY FACILITIES
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
78 CONTRACTOR shall provide Solid Waste Collection services to City Facilities and CITYsponsored events described in ATTACHMENT G at no charge to CITY. CITY and CONTRACTOR shall evaluate each facility and event when determining the appropriate types and quantities of Containers and the Collection frequency.
G. EMERGENCY COLLECTION SERVICE
Should CITY issue an official State of Emergency declaration as a result of a disaster inflicting damage to Residential Premises within CITY’s boundaries, CONTRACTOR shall, within seven (7) days of notification by CITY, commence roadside Collection of Disaster Debris brought to the roadside edge by Residents. Emergency Collection Service shall continue until CITY advises CONTRACTOR to cease such collections. A disaster may include, but is not limited to, wildfire, landslide, earthquake, flood, high wind event, or act of terrorism. If CITY invokes Emergency Collection Service by CONTRACTOR, CONTRACTOR may, with CITY’s approval, combine routine Collection services with the Emergency Collection Service.
At the conclusion of the Emergency Collection Service, CITY shall compensate CONTRACTOR on a per load basis at the rates set forth in Attachment I for Debris Box service, exclusive of City Fees, plus a service fee of Two Hundred Percent (200%) for Collection labor expenses. Payment to CONTRACTOR shall be due within thirty (30) days of receipt of CONTRACTOR’s invoice. All load tickets for which compensation is sought shall accompany CONTRACTOR’s invoice(s).
hin thirty (30) days of receipt of CONTRACTOR’s invoice. All load tickets for which compensation is sought shall accompany CONTRACTOR’s invoice(s).
The cost of Emergency Collection Services rendered to Residential Premises may be eligible for reimbursement by federal, State or County agencies. CITY shall advise CONTRACTOR at the commencement of Emergency Collection Services of any special invoicing requirements needed for such federal or state reimbursement.
End of Attachment.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
79 ATTACHMENT C. SB 1383 SERVICES
CONTRACTOR shall provide the labor, equipment, supervision, supplies, and services to perform the following services related to SB 1383 programs. All services shall be performed at the rates and charges specified in the approved Rate Schedule.
A. OUTREACH AND EDUCATION
1. PROGRAM ADMINISTRATION
CONTRACTOR shall employ a full-time Environmental Coordinator to oversee the SB 1383 Program including the activities of administration, public outreach, compliance monitoring, enforcement coordination and reporting.
The Environmental Coordinator shall be assigned to CONTRACTOR’s companies Desert Valley Disposal, Inc. (serving the City of Desert Hot Springs and the County Franchise Area No. 10) and Palm Springs Disposal Services (serving the City of Palm Springs), allocated 30-70 respectively.
a. CONTRACTOR’s Environmental Coordinator will supervise a staff of Recycling Ambassadors and will be responsible for coordinating all outreach, enrollment, education, monitoring, enforcement, and reporting activities associated with SB 1383.
b. CONTRACTOR designates Liz Hernandez as its Environmental Coordinator. c. The Environmental Coordinator will be CONTRACTOR’s primary public education and outreach representative, virtually or in-person, with community organizations.
2. WRITTEN OUTREACH
Written outreach (by hard copy or electronic copy) shall consist primarily of the following: quarterly newsletters, recycling guides, and webpages. a. Quarterly Newsletters. CONTRACTOR shall keep Customers informed about Solid Waste programs, services, and events through separate Residential and Commercial quarterly newsletters issued at the start of each calendar quarter.
Newsletters shall be bilingual (English & Spanish) and produced for self-mailing or as a billing insert, as appropriate, with copy provided to CITY. b. Recycling Guide. CONTRACTOR shall prepare and distribute a Recycling Guide with each Residential Organic Waste Cart delivered to new Customers when their subscription is enrolled.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
80 The CITY shall design, prepare, and print sufficient copies of a Residential recycling guide and a Commercial recycling for the following distribution methods:
• Initial Commercial Distribution. With the initial enrollment of Commercial establishments in Organic Waste Recycling, CONTRACTOR’s Recycling Ambassador shall provide each Commercial Customer with a recycling guide.
• Special Event Distribution. For use as handouts by CITY staff and CONTRACTOR representatives at special events.
c. Webpage. CONTRACTOR shall maintain separate Residential and Commercial webpages on its website with current information regarding the respective recycling programs with active links to CalRecycle and CITY’s webpages.
CONTRACTOR shall post its Residential and Commercial newsletters on its website.
3. ADDITIONAL COMMERCIAL OUTREACH AND EDUCATION EFFORTS a. Recycling Ambassador. CONTRACTOR shall employ one Recycling Ambassador assigned to City to engage directly with Commercial customers. • The Recycling Ambassador will be uniformed, will have experience engaging with the public, and will be professional in their demeanor. • CONTRACTOR’s Recycling Ambassador shall utilize tablets that interface with CONTRACTOR’s customer relationship management system in real time for electronic record keeping and electronic reporting. • CONTRACTOR shall give hiring preference to residents of the CITY and to the ability to communicate in Spanish.
b. Focus Groups. CONTRACTOR shall participate with CITY in up to two (2) City-arranged focus groups comprised of members of specific business community segments for purposes of planning outreach, education, and Organic Waste Recycling program introduction.
c. Community Outreach. CONTRACTOR’s Environmental Coordinator will be CONTRACTOR’s primary public outreach and education representative, virtually or in-person, for community organizations, and special events. d. Business-to-Business Outreach. CONTRACTOR’s Recycling Ambassador shall meet in-person with Commercial Customers to:
• Inform Customers about Recycling and Organic Recycling programs, • Enroll Customers in Recycling and Organic Recycling Programs, • Train Customer employees in proper practices,
• Monitor Customer participation and practices, and
• Re-educate Customers as to proper practices and Waste Reduction.
CONTRACTOR shall maintain an electronic log of such meetings for review by CITY upon request.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
81 B. RESIDENTIAL CONTAINERS AND ACCEPTED MATERIALS
1. CART SPECIFICATIONS,COLORS, IDENTIFICATION, AND LABELS All Carts provided to Customers by CONTRACTOR shall be industry standard rotational molded plastic carts with wheels and attached lids. The Carts shall be of the proper color with identification of purpose and labeling complying with the requirements of SB 1383.
Cart specifications, colors, identification, and labels shall be approved by City.
CITY acknowledges that existing Carts provided to Customers do not meet the requirements of SB 1383 for color and labeling and CITY hereby authorizes CONTRACTOR to transition from non-compliant to compliant Carts as part of its ongoing replacement of aged-out Carts as provided for by CalRecycle Regulations. For Carts already in service, CONTRACTOR shall affix compliant labeling stickers before July 1, 2024, or as reasonably soon thereafter as possible. soon thereafter as possible.
CITY and CONTRACTOR will cooperate on the use of QR Codes in labels to enable residents to access a mobile device application to access updated lists of accepted materials and special information and messages related to recycling and organic waste recycling.
2. Accepted Materials
CONTRACTOR shall collect the Accepted Materials listed below for the Residential Recycling Program and the Residential Organic Waste Recycling program. The presence of Prohibited Materials may result in extra charges in accordance with the approved Rate Schedule and/or enforcement actions by CITY.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
82 RESIDENTIAL NON-ORGANIC RECYCLING PROGRAM
Category Accepted Materials Prohibited Materials
Cardboard
(OCC)
Clean, uncoated & flattened cardboard Soiled cardboard, Wax-coated cardboard
Paper Cereal boxes, envelopes, file folders, frozen
food boxes, junk mail, magazines, mixed
paper, office paper, newspaper, telephone
books, white paper
Facial tissue
Plastics ID codes & common products:
#1 PET – soda water bottles, cups, jars, trays
& clamshells
#2 HDPE – milk jugs, detergent & shampoo
bottles, flowerpots, grocery bags
#3 PVC – cleaning supply jugs, pool liners,
twine, sheeting, automotive product bottles
#4 LDPE – bread bags, paper towel & tissue
overwrap, squeeze bottles, trash bags, sixpack rings
#5 PP – yogurt tubs, cups, juice bottles,
straws, hangers, sand & shipping bags
Rigid plastic toys, Plastic furniture,
Cling wrap for food, Frozen food
bags, #6 PS – to go containers hot
cups, shipping cushion. #7 Other –
polycarbonate, Lexan, CDs, ABS,
Garden hoses
Metal Aluminum cans, Aluminum foil, Empty
aerosol cans, Pie tins, Tin, steel, bi-metal
cans
Coat hangers
Glass Jars, Bottles Light bulbs, Mirrors, Window glass, Ceramics, Dishes
Other Green waste, Food waste, C&D,
Electronic waste, Animal waste,
Diapers, Hazardous waste
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
83 RESIDENTIAL ORGANIC WASTE RECYCLING PROGRAM
Category Accepted Materials Prohibited Materials
Green
Waste
Grass clippings, leaves, weeds, prunings,
flowers,
Wood waste & lumber (untreated &
unpainted)
Other yard waste
Stumps, Soil, Pressure-treated
wood, Painted wood, Wood with
foreign objects (nails, screws,
brackets, etc.), Glass, Metal,
Plastic-coated or wax-coated
cardboard, Any material too large
for container, Palm fronds, Soiled
cardboard
Food Waste
Bagged food waste ONLY
Fruits & vegetables, Dairy products &
bread, Cooked meat & seafood (including
bones & shells), Coffee grounds & filters
(except K-pods), Food soiled paper
products, Food-soiled cardboard products,
Fiber-based & certified compostable
foodware
Raw meat & seafood, Rubber
bands, Twist ties, Plastic & noncertified compostable food containers & foodware,
Recyclables (plastic, glass, metal),
K-pods
Other Hazardous waste, Non-organic
waste
3. Changes to Accepted Materials
CONTRACTOR may update the list of Accepted Materials to reflect changes in markets, recyclability of materials, or acceptance by processor by giving sixty (60) day advance written notice to CITY and thirty (30) day advance written notice to Residential Customers.
The advance notice to Residential Customers may be made through the CONTRACTOR’s quarterly newsletter. Any changes in the list of Accepted Materials shall also be accompanied by either a new Container label or a sticker affixed by CONTRACTOR to existing Container labels which clearly indicates the updated listing of materials accepted and not accepted.
isting Container labels which clearly indicates the updated listing of materials accepted and not accepted.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
84 Any changes in the list of Accepted Materials shall also be accompanied by either a new Container label or a graphic sticker affixed by CONTRACTOR to Containers which clearly indicate the updated listing of materials accepted and not accepted, or through the use of a Quick Response Code (QR Code) affixed by CONTRACTOR to Containers from which Commercial Customers can access the updated listing of materials accepted and not accepted using a smart phone or tablet. rials accepted and not accepted using a smart phone or tablet.
C. COMMERCIAL CONTAINERS AND ACCEPTED MATERIALS
CONTRACTOR shall perform collections of Refuse, Recycling, and Organic Waste generated by Commercial customers from Bins or Carts provided to business establishments and institutions and to Residential premises subscribing to Bin service.
1. Container Specifications, Colors, Identification and Labels a. Container specifications, colors, identification, and labels shall be approved by CITY.
b. CITY acknowledges that existing Containers provided to Customers do not meet the requirements of SB 1383 for color and labeling and CITY hereby authorizes CONTRACTOR to transition from non-compliant to compliant Carts as part of ongoing replacement of aged-out Carts as provided for by CalRecycle regulations. For Carts and Bins already in service, CONTRACTOR shall affix labels before July 1, 2024, or as reasonably soon thereafter as possible.
c. CITY and CONTRACTOR will cooperate on the use of QR Codes in labels to enable Commercial Customers to access a mobile device application to access updated lists of accepted materials and special information and messages related to recycling and organic waste recycling.
2. Accepted Materials
CONTRACTOR shall collect the Accepted Materials listed below for the Commercial Recycling Program and the Commercial Organic Waste Recycling program.
The presence of Prohibited Materials may result in extra charges, enforcement actions and/or removal of containers.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
85 COMMERCIAL RECYCLING PROGRAM
Category Materials Accepted Materials NOT Accepted
Cardboard
(OCC)
Clean, uncoated & flattened cardboard Soiled cardboard
Wax-coated cardboard
Paper Cereal boxes, envelopes, file folders, frozen
food boxes, junk mail, magazines, mixed paper,
office paper, newspaper, telephone books,
white paper
Facial tissue
Plastics ID codes & common products:
#1 PET – soda water bottles, cups, jars, trays
& clamshells
#2 HDPE – milk jugs, detergent & shampoo
bottles, flowerpots, grocery bags
#3 PVC – cleaning supply jugs, pool liners,
twine, sheeting, automotive product bottles
#4 LDPE – bread bags, paper towel & tissue
overwrap, squeeze bottles, trash bags, sixpack rings
#5 PP – yogurt tubs, cups, juice bottles,
straws, hangers, sand & shipping bags
Rigid plastic toys, Plastic
furniture, Cling wrap for food,
Frozen food bags, #6 PS – to go
containers hot cups, shipping
cushion, #7 Other –
polycarbonate, Lexan, CDs,
ABS, Garden hoses
Metal Aluminum cans, Aluminum foil, Empty aerosol
cans, Pie tins, Tin, steel & bi-metal cans
Coat hangers
Glass Jars, Bottles Light bulbs, Mirror, Window
glass, Ceramics, Dishes
Other Green waste, Food waste,
Construction debris,
Electronic waste, Animal
waste, Diapers, Hazardous
waste
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
86 COMMERCIAL ORGANIC WASTE RECYCLING PROGRAM
Category Materials Accepted Materials NOT Accepted
Green
Waste
Grass clippings, leaves, weeds, prunings,
flowers,
Wood waste & lumber (untreated & unpainted)
Other yard waste
Stumps, Soil, Pressure-treated
wood, Painted wood, Wood
with foreign objects (nails,
screws, brackets, etc.), Glass,
Metal, Plastic-coated or waxcoated cardboard, Any
material too large for
container, Palm fronds, Soiled
cardboard
Food Waste Bagged food waste ONLY
Fruits & vegetables, Dairy products & bread,
cooked meat & seafood (including bones &
shells), Coffee grounds & filters (except K-pods),
Food soiled paper products, Food-soiled
cardboard products, Certified fiber-based
foodware
Raw meat & seafood, Rubber
bands, Twist ties, Plastic and
non-certified food containers
& foodware, Recyclables
(plastic, glass, metal). K-pods
Other Hazardous waste, Nonorganic waste
3. Changes to Accepted Materials
CONTRACTOR may update the list of Accepted Materials to reflect changes in markets, recyclability of materials, or acceptance by processor by giving sixty (60) day advance written notice to CITY and thirty (30) day advance written notice to Residential Customers.
The advance notice to Commercial Customers may be made through the CONTRACTOR’s quarterly newsletter. Any changes in the list of Accepted Materials shall also be accompanied by either a new Container label or a sticker affixed by CONTRACTOR to existing Container labels which clearly indicates the updated listing of materials accepted and not accepted.
sting Container labels which clearly indicates the updated listing of materials accepted and not accepted.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
87 Any changes in the list of Accepted Materials shall also be accompanied by either a new Container label or a graphic sticker affixed by CONTRACTOR to Containers which clearly indicate the updated listing of materials accepted and not accepted, or through the use of a Quick Response Code (QR Code) affixed by CONTRACTOR to Containers from which Commercial Customers can access the updated listing of materials accepted and not accepted using a smart phone or tablet. ials accepted and not accepted using a smart phone or tablet.
D. ENROLLMENT
CONTRACTOR’s representative shall enroll each new Commercial establishment in Recycling and Organic Waste Recycling service in real time by electronic entry in CONTRACTOR’s customer relationship management system. CONTRACTOR shall provide each new subscribing Commercial establishment with an in-person orientation to Recycling and Organic Waste Recycling and a printed recycling guide.
CONTRACTOR’s Customer file shall include record of recycling orientation, education, and every training conducted by CONTRACTOR.
OR.
CONTRACTOR shall maintain a monthly cumulative record of all Customer enrollments, including name, service address, subscribed services, recycling orientation, education, and trainings, and such record shall be made available to CITY upon request.
E. OBSERVED CONTAMINATION
If CONTRACTOR’s Collection driver or other representative encounters a Container with noticeable contaminants, the driver or representative shall:
• Tag the Container as uncollectable.
• Photograph the Container’s contents.
• Report the service address to CONTRACTOR’s dispatch office by electronic tablet or by radio or phone.
• Leave the tagged Container uncollected for later collection as disposed waste.
CONTRACTOR’s Recycling Ambassador or dispatch office shall notify the Customer of the condition by telephone or electronic mail and advise Customer of the need to remove the contaminates for proper recycling or disposal. CONTRACTOR’s field representative shall initiate an in-person visit with Customer to educate the Customer’s representative and offer training of Customer’s employees.
A report of observed contamination shall be reported to CITY electronically or in writing.
F. UNCOLLECTED CONTAINERS
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
88 Blue, Green, or Brown Containers uncollected by CONTRACTOR due to contamination shall be Collected for Disposal as Gray Container Solid Waste. Containers with contamination tagged before Noon shall be Collected for Disposal the same day, while Containers with contamination tagged after Noon shall be collected for disposal the following workday.
Containers with contamination Collected as Refuse shall be subject to the return trip charge specified in the approved Rate Schedule except that return trip charge shall be waived as courtesy for a Customer’s first offence.
G. WAIVERS
Commercial establishments may be granted a waiver by CITY from recycling, green waste recycling or food waste recycling for reasons of self-hauling, alternative arrangements, de minimis generation, or space limitations as may be specified in CITY and State regulations.
CITY shall establish regulations for waivers and an application form and for a review and approval process. CONTRACTOR shall cooperate with CITY in performing site reviews before waivers are granted or denied. City’s waivers may be granted for a specified period of time. CITY shall provide CONTRACTOR with a record of each granted waiver, and CONTRACTOR shall enter each waiver into CONTRACTOR’s Customer file. r a specified period of time. CITY shall provide CONTRACTOR with a record of each granted waiver, and CONTRACTOR shall enter each waiver into CONTRACTOR’s Customer file.
H. MONITORING
1. CONTRACTOR’s Monitoring Work Plan
Upon request of CITY, CONTRACTOR shall provide CITY with a written schedule for the Calendar Year for performing Hauler Route Reviews.
2. Contamination Monitoring Program
CITY has elected to utilize the Three-Container Organic Waste Collection Service as described in SB 1383 Regulation Section 18984.1 as its approach to Standard Collection Service for Residential and Commercial collections.
SB 1383 Regulation Section 18984.5 requires that CITY monitor Containers for contamination.
CONTRACTOR shall perform contamination monitoring of its Residential and Commercial services.
a. Residential Contamination Monitoring. CONTRACTOR’s Residential contamination monitoring shall consist of Hauler Route Reviews.
Residential Hauler Route reviews entail visual inspections of select individual Residential Containers for contamination and are intended to satisfy the SB 1383 contamination monitoring requirement (Section 18984.5(b)).
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
89 b. Commercial Contamination Monitoring. CONTRACTOR’s Commercial contamination monitoring shall consist of Hauler Route Reviews and Comprehensive Individual Inspections. (The term “Commercial customers” means:
(i) business establishments utilizing Bin services; (ii) multi-family apartment complexes utilizing Bin services; and (iii) neighborhoods of detached or attached residential dwellings utilizing Bin services.)
Commercial Hauler Route Reviews entail visual inspections of select individual Commercial Containers for contamination and are intended to satisfy the SB 1383 contamination monitoring requirement (Section 18984.5(b)).
Commercial Enforcement Inspections entail detailed physical inspections of the contents of Containers used by individual Commercial customers and are intended to be a part of CITY’s enforcement program.
3. Hauler Route Reviews
a. Description. A Hauler Route Review means monitoring selected Customer Containers for contamination and shall entail:
• A visual inspection for the presence of prohibited materials in each Gray, Blue, Green or Brown Container used by an individual Customer.
A “visual inspection” entails scrutinizing the contents of Containers by CONTRACTOR’s representative for the obvious presence of Prohibited Materials (which may involve probing the contents with a poker but does not mean the opening of bags or boxes within the Container, nor the removal of the contents of the Container to perform the inspection). • That are available for collection on Customer’s regular collection day. • Where the Customer is part of a sample population selected at random. • From each of CONTRACTOR’s Gray Container daily routes.
For each Gray Container selected for inspection, every Container (Blue, Green and Brown) will be inspected as part of the work. b. Inspection Schedule. CONTRACTOR’s Hauler Route Review inspections of Containers on an individual route shall be conducted on the same day, however, visual inspections for different routes need not be conducted on the same day or even in the same week.
To accommodate CONTRACTOR’s available resources, Residential and Commercial Hauler Route review inspections may be staggered over the course of the calendar year at CONTRACTOR’s discretion in accordance with the written work plan.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
90 c. Sample Selection. Customers chosen to be part of a sample population for Hauler Route review inspection shall be selected at random by route. d. Inspection Day & Sample Size. Residential Hauler Route review inspections shall occur on the day of collection. Commercial Route Review inspections may be performed on the day prior to or day of a scheduled collection. If any of the Containers of a Customer have been collected prior to inspection, the inspector will move on to the next Customer on the target list.
To maintain the target sample size, the number of randomly selected accounts to be sampled on a route will be tripled so that the target sample size can still be achieved even if some accounts are not inspected because one or more Containers of an account have already been collected.
Once CONTRACTOR’s inspector has performed the required number of inspections on a route or exhausted the list of randomly selected accounts, inspections for that route shall be determined as concluded.
e. Hauler Route Review Procedures. When conducting a visual inspection as a part of a Residential or Commercial Hauler Route Review, CONTRACTOR’s inspector shall perform the following procedures with the intent of determining if any Prohibited Material is present:
1. Confirm the service address;
2. Record the Customer’s subscribed number and size of Containers by type (Gray, Blue, Green, or Brown);
3. Record the number and size of Containers by type (Gray, Blue, Green, or Brown) available for inspection;
4. Open the lid of each Container;
5. Inspect the contents of each Container for the presence of any Prohibited Materials visible to the inspector (which may involve probing the contents with a poker, but does not mean the removal of the contents of the Container to perform the inspection; if waste is bagged, inspector will slash open the top one or two bags and probe the contents);
6. Make a finding of either: “PASS” (meaning that no Prohibited Materials were observed), or “FAIL” (meaning that some Prohibited Materials were observed);
7. Record the finding for each Container;
8. Attach a PASS or a FAIL notice to each Container. For Commercial Customers receiving a FAIL rating, CONTRACTOR’s inspector shall attempt to contact a responsible representative of the Customer and deliver the notice in person. When in-person delivery is not possible, the notice shall be delivered via US Postal Service or by electronic mail.
Item Number: 16.
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91 f. Post-Inspection Notices. All post-inspection notices shall include a message advising the Customer that the inspection was performed as required by State Regulations solely for the purpose of minimizing Prohibited Materials in Containers and shall contain the date of inspection and identification of the inspector. • PASS notices shall carry a positive message congratulating the Customer on their environmental awareness and participation.
• FAIL notices shall identify the Prohibited Material(s) found and direct the Customer to the CITY’s and CONTRACTOR’s websites for more information regarding correct recycling practices.
The form and content of post-inspection notices shall be approved by the CITY in advance of their use.
4. Contamination Monitoring Reporting
a. Hauler Route Review Reports. CONTRACTOR shall maintain a record of each Route Review inspection including the date of inspection, Customer name, service address, Container description (including type, size, and number), PASS or FAIL finding, notification made, if any, and recommended follow-up action, if any.
For Containers with excessive amounts of Prohibited Waste, the record shall include a photographic record of the inspection and a copy of written notification to the Customer.
b. Reports. Upon request of CITY, CONTRACTOR shall provide CITY a summary of inspections performed. Records of individual inspections shall be maintained and available for inspection by the CITY.
c. Outreach and Education by City. As a follow-up to CONTRACTOR’s Hauler Route Reviews, CITY shall perform outreach and education to individual Residential and Commercial generators that acknowledges Customers achieving a PASS rating and educates Customers receiving a FAIL rating.
5. Residential Hauler Route Reviews
The number of visual inspections performed in a Residential Hauler Route Review shall be determined as follows:
a. Initial Residential Hauler Route Review. Commencing July 1, 2024, CONTRACTOR shall perform Hauler Route Review inspections of the available Gray, Blue, and Green Containers of four (4) Residential Customers from each of CONTRACTOR’s daily Gray Container Residential Routes for a total of sixty-seven (67) inspections.
Computation:
4.17 Gray Container routes each operated 4 days per week, Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
92 4 accounts inspected per route,
Total inspections = 98.
[4.17 routes x 4 days = 16.68 total daily routes; 16.68 total daily routes x 4 inspections each = 66.72 total inspections, say 67] With 4 individual inspections to be performed per route day, the list of random account addresses for each route shall be 12 per route day.
[4 planned inspections x 3 = 12 random account addresses] b. Subsequent Route Reviews. Commencing January 1, 2025, and each calendar year thereafter, CONTRACTOR’s Route Review shall consist of visual inspections of a combination of 80% new inspections and up to 20% re-inspections. • New Inspections. For new inspections, eight (8) accounts will be selected randomly from each daily route for review. To account for the possibility that some accounts may have been collected prior to the arrival of the inspector, the random list shall include three times the number of inspections planned.
Computation:
4.17 Gray Container routes each operated 4 days per week, 8 inspections per route,
Total inspections = 133.
[4.17 routes x 4 days x 8 inspections each = 133.44
inspections, say 133]
With 8 individual inspections to be performed per route day, the list of random account addresses for each route shall be 24. [8 planned inspections x 3 = 24 random account addresses] • Re-Inspections. Up to twenty-seven (27) Residential Customers selected by CITY from among Customers that received a FAIL rating in the previous year’s inspection shall be re-inspected in the following year. To the extent reasonably possible, CONTRACTOR shall attempt to perform re-inspections at about the same time of year as the original inspection.
c. Residential Container Exchanges It is intended that CONTRACTOR’s Visual Inspections of Residential Containers will be made on the Route, however, at CONTRACTOR’s discretion, Customer Containers to be inspected in a Hauler Route Review may be exchanged on the route, like-for-like, and brought to Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
93 CONTRACTOR’s facility where the visual inspection will be performed. If the exchange process is used, replacement Containers shall be either new Containers or clean refurbished Containers.
6. Commercial Hauler Route Reviews
In the first full calendar year of the Agreement, and each calendar year thereafter, CONTRACTOR shall perform Hauler Route Review inspections of the GRAY, BLUE, GREEN, or BROWN Containers of approximately thirty (30) Commercial Customers allocated equally over each of CONTRACTOR’s Commercial Gray Container Routes.
Computation:
If CONTRACTOR operates 1 Gray Container route, 5 days per week, the 30 accounts to be inspected would be distributed over 5 daily routes, resulting in 6 account inspections per route.
[1 route x 5 days = 5; 30 inspections / 5 daily routes = 6 inspections per route]
Roll-off Containers (debris boxes and stationary compactors) used regularly by Commercial customers are limited in their number and shall be included for selection for a Commercial Hauler Route review but shall be limited to two such Containers per calendar year.
a. Commercial Re-Inspections. Commercial Customers that fail an inspection shall be re-inspected within sixty (60) days following outreach by CONTRACTOR or CITY to that customer. Commercial Customers that fail a re-inspection shall be reported individually to the CITY for follow-up by the CITY. CONTRACTOR’s requirement to perform re-inspections shall be limited to seven (7) per calendar month. On an annual basis, every route will be reviewed based on the inspection schedule included in the written work plan.
I. ENFORCEMENT
CITY shall be responsible for enforcing adherence to recycling and organic waste recycling regulations by Residential and Commercial waste generators.
Enforcement Inspections are comprehensive inspections conducted by CONTRACTOR intended to document excessive contamination or persistent non-participation as part of a code enforcement action.
When directed by City, CONTRACTOR shall perform an Enforcement Inspection at Commercial establishments. Enforcement Inspections will not be deployed for Containers collected individually from Residential Customers.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
94 When directed by CITY by a seven (7) day advance written notice, CONTRACTOR shall perform an Enforcement Inspection of Containers used by a Commercial Customer. At CONTRACTOR’s sole discretion, such inspections may be performed at the Customer’s premises or at CONTRACTOR’s facility.
CONTRACTOR shall be compensated by the Customer for the cost of an Enforcement Inspection in accordance with the rates authorized in the approved Rate Schedule. Before commencing an Enforcement Inspection, CONTRACTOR shall provide Customer with a written estimate of the cost.
ide Customer with a written estimate of the cost.
Enforcement Inspections shall be performed under the direct supervision of the CITY as a part of an enforcement action and shall consist of a physical inspection of each Container used by Customer to determine the percentage by weight of Prohibited Material present in each of Customer’s Containers. CONTRACTOR’s inspections shall entail the following steps:
1. Identify the proper Gray, Blue, Green and/or Brown Containers and confirming the associated Customer;
2. Weigh the contents of each Container;
3. Physically separate Prohibited Material from Accepted Material of each Container;
4. Weigh the Prohibited Materials recovered from each Container;
5. Compute the rate of Prohibited Material for each Container as a percentage of the total weight of the Container’s original contents;
6. Rate each Container as PASS or FAIL based upon the Contamination Threshold below; and,
7. Prepare and submit to CITY a report of the inspection which may include photographic findings.
1. Contamination Thresholds. Prohibited Materials in Commercial Containers undergoing an Enforcement Inspection shall be evaluated based upon the Contamination Thresholds identified below:
Contamination Thresholds
Container Type
%
Contaminatio
n Limit by
Volume
Green (roll-off yard waste only) 2%
Item Number: 16.
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95 Green (mixed organic)
Brown
Blue
Gray
10%
1%
20%
25%
Containers that exceed the percentage contamination limit shall be rated as FAIL.
After the first year, CITY and CONTRACTOR shall review the adequacy of the Contamination Thresholds and make adjustments as appropriate.
2. Limitation on Number of Enforcement Inspections. The Parties recognize that Enforcement Inspections require the use of limited resources and space and could detract from the overall outreach and education objective; therefore, the number of Enforcement Inspections shall be limited to not more than ten (10) per year with no more than two (2) such inspections performed in any thirty (30) day period.
If CITY requires additional Enforcement Inspections beyond those required to meet SB 1383 requirements, it may engage an independent party to perform those inspections.
J. ADDITIONAL SB 1383 REQUIREMENTS
1. Community Composting
CONTRACTOR shall support any community compost program within CITY’s boundaries that is locally organized, operated by volunteers, properly sized and properly permitted in accordance with State requirements and the Desert Hot Springs Municipal Code by delivering sufficient quantities of food waste and/or mixed organic waste on demand within two (2) business days of the request, and at no charge to the community compost program or the CITY. CONTRACTOR offers no assurances as to the suitability of the material for use by the community composting program.
2. Recovered Organic Products
a. Recovered Organic Product Giveaway. Twice annually, in conjunction with the Community Document Shredding Drop-Off Event, CONTRACTOR shall provide up to 40-cubic yards of bulk compost or bulk mulch for distribution to City Residents who shall be allowed to fill containers that they provide on a first come, first serve basis at no cost. Any compost and/or mulch remaining after the event shall be utilized by CITY at a site designated by City.
Item Number: 16.
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96 b. Recovered Organic Product Usage. CONTRACTOR shall report to CITY any recovered organic products used by CONTRACTOR in its operation including bulk material or recovered biogas.
K. EDIBLE FOOD RECOVERY ASSISTANCE
CITY shall have the primary role and responsibility to arrange, monitor and enforce participation in a Commercial Edible Food Recovery Program. CITY shall create and maintain a listing that classifies Commercial establishments. CONTRACTOR shall assist CITY with its Edible Food Recovery Program by reporting new Commercial customers and providing Commercial Customers with information about the program.
1. Classification of Commercial Customers. Upon request of CITY, CONTRACTOR shall assist CITY with classifying all new Commercial customers as a ‘Tier One’ or a ‘Tier Two’ Edible Food Generators.
2. Reporting. Upon request of CITY, CONTRACTOR shall provide CITY information regarding new Commercial customers classifying them as Tier One and Tier Two Commercial Edible Food Generators which shall include:
• Customer name
• Service address
• Contact information
• Tier One or Tier Two classification
• Type of business
Reports of Tier One and Tier Two Edible Food Generators shall be updated periodically upon request of the CITY.
3. Education. At least once annually in its Commercial quarterly newsletter, CONTRACTOR shall provide Commercial Customers with information about:
• CITY’s Edible Food Recovery Program.
• Requirements upon Commercial Edible Food Generators of 14 CCR Chapter 12 Article 10.
• Food Recovery Organizations and Food Recovery Services. • Actions that Commercial Edible Food Generators can take to prevent the creation of Food waste.
L. REPORTING
Upon request of CITY, CONTRACTOR shall produce the following reports for CITY:
1. Mandated Recycling Programs
a. Commercial Establishments
• The number required to recycle.
• The number participating in recycling.
• The number exempt from recycling by reason.
• The number not participating in recycling.
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97 • Description of problems encountered with recycling by Commercial establishments.
b. Multi-Family Establishments
• The number required to recycle.
• The number participating in recycling.
• The number exempt from recycling by reason.
• The number not participating in recycling.
• Description of problems encountered with recycling by Multi-Family complexes.
2. Mandated Organic Waste Recycling Programs
a. Commercial Establishments – Green Waste
• The number required to recycle green waste.
• The number participating in green waste recycling.
• The number exempted from green waste recycling by reason. • The number not participating in green waste recycling. • Description of problems encountered with green waste recycling by Commercial establishments.
b. Commercial Establishment – Food Waste
• The number required to recycle food waste.
• The number participating in food waste recycling.
• The number exempted from food waste recycling by reason. • The number not participating in food waste recycling. • Description of problems encountered with food waste recycling by Commercial establishments.
c. Commercial Establishment – Mixed Organic Waste
• The number required to recycle mixed organic waste.
• The number participating in mixed organic waste recycling. • The number exempted from mixed organic waste recycling by reason. • The number not participating in mixed organic waste recycling. • Description of problems encountered with mixed organic waste recycling by Commercial establishments.
d. Multi-Family Complexes – Green Waste
• The number required to recycle green waste.
• The number participating in green waste recycling.
• The number exempt from green waste recycling by reason. • The number not participating in green waste recycling. • Description of problems encountered with green waste recycling by MultiFamily complexes. e. Multi Family Complexes – Food Waste
• The number required to recycle food waste .
Item Number: 16.
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98 • The number participating in food waste recycling.
• The number exempted from food waste recycling by reason. • The number not participating in food waste recycling. • Description of problems encountered with food waste recycling by MultiFamily Complexes. f. Multi-Family Complexes – Mixed Organic Waste
• The number required to recycle mixed organic waste.
• The number participating in mixed organic waste recycling. • The number exempted from mixed organic waste recycling by reason. • The number not participating in mixed organic waste recycling. • Description of problems encountered with mixed organic waste recycling by Multi-Family Complexes.
3. Activity Report
A summary of enrollment, outreach, monitoring/inspections performed during the Calendar Year.
End of Attachment.
Item Number: 16.
Desert Hot Springs Solid Waste Franchise Agreement
99 ATTACHMENT D. DEBRIS ABATEMENT PROGRAM
The Debris Abatement Program described in this ATTACHMENT D is an additional service arranged by CITY on an annual basis.
A. BACKGROUND
Illegally dumped debris has been a long running and persistent problem in the CITY. On January 20, 2016, the City Council authorized the City Manager to enter into an agreement with Contractor to conduct a one-year pilot program to remove debris that has been illegally dumped in the public right of way and on vacant property within the jurisdictional boundaries of the City (the “Pilot Program”). The Pilot Program commenced February 29, 2016 and ended February 28, 2017. Based upon the results of the Pilot Program, the CITY found that a concerted daily effort to abate debris had made a significant difference. The Parties have continued the Program through June 30, 2024, by separate letter agreement and wish to operate the Program as a part of the Franchise Agreement on a year-by-year basis.
B. TERM AND RENEWAL
The Debris Abatement Program (“Program”) shall be operated in one (1) year increments commencing with the twelve (12) month period July 1, 2024 (“Start Date”) and ending June 30, 2025.
Effective July 1 2025, and each July 1st thereafter, the Program shall be automatically renewed for one (1) additional year unless either Party terminates the Program by delivering a written Termination Notice before April 1st.
Such Termination Notice applies to this Debris Abatement Program ONLY and has no bearing on any other aspect of the Agreement.
C. PROGRAM DESCRIPTION
Commencing on Start Date and continuing each regular weekday thereafter, Contractor shall regularly and systematically abate Debris within the jurisdictional boundaries of the CITY that has been (i) illegally dumped in the public right-of-way, or (ii) illegally dumped on privately-owned, undeveloped land and visible from any paved public roadway.
1. Workdays, Workweek and Work Hours
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CONTRACTOR’s abatement efforts shall be performed on weekdays, Monday through Friday, 7:30 A.M. to 3:00 P.M., except days recognized as the holidays of New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
At CITY’s reasonable advance written request, CONTRACTOR’s abatement crew will also be deployed on non-weekdays or outside of regular work hours subject to the charges described herein for Additional Work.
2. Personnel
CONTRACTOR shall deploy two (2) full-time employees, or equivalent, during each workday to perform the services of this Program. For reasons of worker safety, employees shall be deployed as a team of two (2).
3. Equipment
CONTRACTOR shall provide one (1) stake bed truck to transport all Debris collected in the Program.
4. Priorities
Debris shall be collected in accordance with the following priorities:
• First, along the CITY’s major thoroughfares.
• Second, Work Orders received from Authorized CITY Personnel or the public. • Third, grid sections of the CITY as approved by CITY. • Fourth, alleyways and easements.
• Fifth, undeveloped lots.
5. Collection and Disposal of Trash
CONTRACTOR shall collect Debris, provided CONTRACTOR’s two (2) employees can safely lift and load the Debris onto a stake bed truck without causing injury.
6. Exclusions
CONTRACTOR will not collect natural vegetation, toxic substances, and motor vehicles or motor vehicle components, except for unmounted passenger vehicle and light truck tires.
7. Temporary Storage Site
CITY shall make its Corporation Yard available to CONTRACTOR to off-load and temporarily store Debris for later transport by CONTRACTOR to a Disposal or Diversion site.
8. Disposal and Diversion
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Debris collected in the Program will be Disposed at the Edom Hill Transfer Station or Diverted from Disposal when reasonably appropriate and possible, at CONTRACTOR’s sole discretion.
9. Program Management
CITY shall direct written work orders and written special debris removal requests to CONTRACTOR’s Contract Liaison or Program Supervisor via electronic mail:
Contract Liaison: Chris Cunningham, [email protected] Program Supervisor: Blake Wade, [email protected]
10. Public Outreach
CONTRACTOR shall maintain the following “hotline” email address for use by the public and will publicize the email address in its quarterly newsletter ([email protected]).
D. CONSIDERATION
As consideration for CONTRACTOR’s performance of this Program, CITY shall compensate CONTRACTOR as follows:
1. Monthly Amount Due, July 1, 2024 through June 30, 2025 The monthly amount due CONTRACTOR for the twelve (12) months July 1, 2024 through June 30, 2025 shall be $19,039.82.
2. Additional Work
Work performed by CONTRACTOR outside of regular Workdays and regular work hours as directed in writing by the City Manager or his designee shall be compensated as additional work at the rate of $107.56 per hour or portion thereof.
3. Invoices and Due Date
CONTRACTOR shall invoice CITY monthly for the performance of the Program.
Payments by CITY shall be due thirty (30) days following receipt of invoice. CITY shall remit payment to CONTRACTOR independent of any other disbursements or payments to CONTRACTOR.
4. Payments for Subsequent Years
Effective July 1, 2025, and each July 1st thereafter, the monthly amount due and the hourly rate for additional work shall be adjusted by the formula change in the Consumer Price Index specified in the Agreement.
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E. RECORDS
CONTRACTOR shall maintain a record of services performed and of the amounts and types of Debris collected, along with a record of problem areas and sources of litter.
Such records shall be available for inspection by the CITY during normal business hours and upon reasonable advanced written request.
F. COORDINATION
CONTRACTOR shall cooperate with CITY’s Code Enforcement Officers in identifying the sources of Debris and waste generators not in compliance with CITY’s regulations regarding the storage and Disposal of Solid Waste.
G. INDEMNIFICATION
CITY specifically agrees to indemnify, hold harmless and defend CONTRACTOR for any claims, fines or penalties for soil disturbance or loss alleged by any individual, corporation or governmental agency related to CONTRACTOR’s operation of the Program.
End of Amendment.
Item Number: 16.
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103
ATTACHMENT E. CONTRACTOR’S RULES AND REGULATIONS
Attachment E describes CONTRACTOR’s Rules and Regulations for Solid Waste Collection services.
A. RESIDENTIAL CART SERVICE
1. Carts must be placed at the curb by 6:00 AM on Collection day.
2. Containers placed for Collection must have the lid opening facing the street and must be at least four (4) feet from any parked car or fixed object.
3. Containers must be filled no more than level full and with lids fully closed.
4. Food Waste deposited in Organic Waste Recycling Carts must be bagged in clear plastic bags.
5. CONTRACTOR not responsible for damage to private street pavement not designed, installed, and maintained to accommodate routine heavy truck usage.
B. MULTI-FAMILY COMPLEXES, 5 OR MORE DWELLINGS
1. Bin service shall be the standard service. At CONTRACTOR’s discretion, Cart service may be permitted for existing Customers using Carts or for special circumstances such as space constraints.
2. Centralized Collection applies to all materials: Refuse, Mixed Recycling, and Mixed Organic Waste.
3. The minimum weekly service per dwelling:
a. Refuse Collection, equivalent of one (1) cubic yard per dwelling. b. Mixed Recycling Collection, equivalent of one-half (1/2) cubic yard service per dwelling.
c. Mixed Organic Waste Collection, equivalent of one-third (1/3) cubic yard per dwelling.
4. Food Waste deposited in Organic Waste Bins or Carts must be bagged in clear plastic bags.
5. Containers must be accessible on day of Collection and enclosures must be free of debris and obstructions. Inaccessible containers or unkept enclosures may result in missed collections or extra charges.
6. CONTRACTOR not responsible for normal wear and tear of enclosure gates or to damage to enclosures not constructed in accordance with CITY standards.
7. CONTRACTOR not responsible for damage to pavement not designed, installed, and maintained to accommodate routine heavy truck usage.
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C. MOBILE HOME PARKS
1. Service must be arranged by the Mobile Home Park on behalf of residents.
2. Centralized Collection applies to all materials: Refuse, Mixed Recycling, and Mixed Organic Waste.
3. The minimum weekly service per dwelling:
a. Refuse Collection, equivalent of one (1) cubic yard per dwelling. b. Mixed Recycling Collection, equivalent of one-half (1/2) cubic yard service per dwelling.
c. Mixed Organic Waste Collection, equivalent of one-third (1/3) cubic yard per dwelling.
4. Food Waste deposited in Organic Waste Bins or Carts must be bagged in clear plastic bags.
5. Containers must be grouped for centralized collection at one or more locations on the property.
6. Containers must be accessible on day of Collection and enclosures must be free of debris and obstructions. Inaccessible containers or unkept enclosures may result in missed collections or extra charges.
7. CONTRACTOR not responsible for normal wear and tear of enclosure gates or to damage to enclosures not constructed in accordance with CITY standards.
8. CONTRACTOR not responsible for damage to pavement not designed, installed, and maintained to accommodate routine heavy truck usage.
D. COMMERCIAL ESTABLISHMENTS
1. Commercial establishments must subscribe to Refuse, Mixed Recycling, and Organic Waste Recycling services of the type and volume appropriate to the amount of Solid Waste generated.
2. Establishments lacking space for Containers must apply for and receive a waiver from the CITY.
3. Establishments that do not generate Mixed Recycling or Organic Waste must apply for and receive a de minimis waiver from the CITY.
4. Containers must be accessible on day of Collection and enclosures must be free of debris and obstructions. Inaccessible containers or unkept enclosures may result in missed collections or extra charges.
5. CONTRACTOR not responsible for normal wear and tear of enclosure gates or to damage to enclosures not constructed in accordance with CITY standards.
6. CONTRACTOR not responsible for damage to pavement not designed, installed, and maintained to accommodate routine heavy truck usage.
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E. QUARTERLY COMMUNITY CLEAN-UPS
1. Waste is collected curbside, no appointment required.
2. Waste must be at the curb ready for Collection by 6:00 AM on the Monday of the CleanUp week.
3. Clean-Up waste quantities per dwelling are limited to:
a. Two (2) Bulky Items, OR
b. Four (4) containers excess waste, maximum 32-gallons each, OR c. Two (2) bundles of Yard Waste, maximum of 32-gallons each.
4. Loose and uncontained waste will not be collected.
F. DOCUMENT SHREDDING AND E-WASTE RECYCLING EVENTS
1. Document shredding is limited to three (3) file box equivalent limit per vehicle.
2. E-Waste is limited to four (4) items per vehicle.
G. BULKY WASTE
1. General
a. Liquids, hazardous materials, or toxic substances not permitted. b. Automotive parts not permitted.
c. Weight limit (150-pounds each item) and size limit (4-feet each item) apply.
2. Residential Dwellings, including Multi-Family Dwellings with Cart service. a. Twelve (12) Bulky Items collected annually at no charge, limit two (2) Bulky Items per Collection. Collections of more than twelve (12) items per year or two (2) per Collection are subject to the additional charges of the approved Rate Schedule in Attachment I.
i. Bulky Items Collected in community clean-ups do not count against the annual limit.
ii. Holiday trees collected for recycling do not count against the annual limit.
3. Commercial Establishments
a. Bulky Item Collections are performed for the additional charges of the approved Rate Schedule in Attachment I.
H. ROLL-OFF SERVICES
1. Debris boxes must be filled no more than level full.
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2. The contents of debris boxes and stationary compactors must not exceed eight (8) tons.
Overloaded debris boxes and compactors may be subject to extra charges for return trips, offloading, hauling, and disposal of excess solid waste.
I. DELINQUENT ACCOUNTS
1. Delinquent accounts are subject to collection on the County property tax bill as a lien against the property.
2. Delinquent commercial accounts are also subject to a reduction in service.
J. DISAGREEMENTS
1. CONTRACTOR shall refer any Customer disagreements regarding types and amounts of service to CITY for resolution.
End of Attachment.
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107
ATTACHMENT F. PREFERRED CDI WASTE HAULER PROGRAM
The Parties agree that the following procedures shall govern the Preferred Construction, Demolition, Inert Waste Hauler Program.
A. INTENT
It is the intent of the CITY that Projects within the City for which a building or demolition permit is issued shall Divert a minimum of Sixty-Five Percent (65%) of Construction, Demolition, and Inert Waste from Disposal. To meet this goal, CITY has enacted those certain requirements of Municipal Code Chapter 8.08 requiring a permit and refundable deposits to serve as an economic incentive for C&D Diversion. This Agreement establishes a “Preferred CDI Waste Hauler Program” to further encourage CDI Waste Diversion by providing building or demolition permit applicants the option of a waiver from the requirements of Municipal Code Chapter 8.08, as provided for in 8.08.180, namely: (1) obtaining a CDI permit; (2) preparing of a Diversion plan; (3) paying a deposit; (4) tracking Tonnage Diverted and Disposed; and, (5) reporting actual Tonnage Disposed and Diverted.
To qualify for the waiver, a building or demolition permittee must present to CITY evidence of arrangement with CONTRACTOR for mixed CDI Waste Collection, and actively utilize CONTRACTOR’s debris removal services during the entire period of demolition and/or construction on an as-needed basis.
B. RESPONSIBILITIES OF CITY
a. Option for Waiver. CITY shall advise all building permit applicants for Projects, for which a CDI Waste permit is required, of the option of a CDI Waste permit waiver available through the “preferred CDI Waste Hauler Program”.
b. Building Documents. CITY shall post relevant information about Municipal Code Chapter 8.08 requirements including application and report forms. c. Notice. During the Term of the Agreement, CITY shall include the following notice on its website and with each building permit application and in any literature or flyers intended to inform prospective builders and developers:
“Desert Valley Disposal, Inc. is the exclusive franchise hauler for the City of Desert Hot Springs. Clean-up companies and other waste haulers are prohibited from hauling waste from your project. Self-hauling is permitted under certain conditions. Contact the Building Department for more information.” Item Number: 16.
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formation.”
d. Waiver. CITY shall issue an exemption to any building permit applicant electing to enroll in the Preferred CDI Hauler Program in lieu of securing a CITY-issued CDI Permit and provide evidence of all such waivers to CONTRACTOR, monthly within ten (10) days following the end of each calendar month.
e. Waiver Review. CITY’s building officials shall routinely and systematically review CONTRACTOR’s monthly reports of exempt Projects in a timely manner and investigate Projects that have not secured a CDI Waste Permit and are not registered with CONTRACTOR for the Preferred CDI Hauler Program.
f. Field Review. CITY’s inspectors shall report any and all observations of Containers placed by unauthorized haulers, hauling of CDI Waste by unauthorized haulers or accumulations of illegally dumped CDI Waste to City Manager who shall act to carry out the intent of this Preferred CDI Waste Hauler Program.
C. RESPONSIBILITIES OF CONTRACTOR
a. CONTRACTOR shall notify CITY when proper arrangements are made by building or demolition permit applicants for CDI Waste removal for purposes of CITY’s issuance of a waiver of Municipal Code Chapter 8.08 plan, deposit, and reporting requirements. b. CONTRACTOR shall provide Debris Boxes and hauling services for the removal and Diversion of CDI Waste generated by demolition or building projects in City. Said services shall be subject to the rates and charges set forth in Attachment I, Rate Schedule.
c. Reporting. Upon request of CITY, CONTRACTOR shall prepare reports for CITY regarding waived projects and processing facilities.
End of Attachment.
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ATTACHMENT G. CITY FACILITIES AND CITY-SPONSORED
EVENTS
A. CITY FACILITIES
Contractor shall provide Solid Waste Collection services to the following City Facilities at no cost to City. City shall determine the type and number of Containers and the frequency of Collection.
Name of City Facility Location
City Hall 11999 Palm Dr.
Police Department 65950 Pierson Blvd.
Fire Station #36 (Skyborne) 11535 Karen Ave.
Fire Station #37 65958 Pierson Blvd.
Senior Center 11777 West Dr.
Library 14380 Palm Dr.
Guy Tedesco Park 12800 West Arroyo Dr.
Mission Springs Park 14510 Palm Dr.
Wardman Park 66190 8th St.
Recreation Center 11750 Cholla Dr.
Reflection Park 10901 Palm Dr.
Rotary Dog Park 13598 Don English Way
Sgt. Hodge Skate Park 11777 West Dr.
Veteran’s Memorial Park 10101 Palm Dr.
Corporate Yard Park Ln.
Cabot’s Pueblo Museum 67616 Desert View Ave.
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B. CITY-SPONSORED EVENTS
Contractor shall provide Solid Waste Collection services to the following City-sponsored events at no cost to City. City shall determine the type and number of Containers and the frequency of Collection.
Name of City-Sponsored Event
Memorial Day Ceremony
Independence Day Celebration
Dia de las Muertos
Veterans Day Ceremony
Holiday Parade & Tree lighting Festival
End of Attachment.
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ATTACHMENT H. DESIGNATED SOLID WASTE FACILITIES
CONTRACTOR hereby designates the following Solid Waste Facilities for delivery of waste materials collected in City.
A. DISPOSAL FACILITIES
The Edom Hill Transfer Station (SWIS #33-AA-0296), Cathedral City, is the primary facility forthe delivery and disposal of SolidWasteCollected in theCity.
As of July 1, 2023, the tip fee at this facility is $59.70 per ton.
B. MIXED RECYCLING FACILITY
The Edom Hill Transfer Station (SWIS #33-AA-0296), Cathedral City, is the primary facility for the delivery and diversion of source-separated mixed recycling.
As of July 1, 2023, the tip fee at this facility is $90.00 per ton.
C. GREEN WASTE FACILITY
The Edom Hill Transfer Station (SWIS #33-AA-0296), Cathedral City, is the primary facility for the delivery and diversion of source-separated green waste.
As of July 1, 2023, the tip fee at this facility is $65.28 per ton.
D. ORGANIC WASTE FACILITIES
The Edom Hill Transfer Station (SWIS #33-AA-0296), Cathedral City, is the primary facility for the delivery and diversion of source-separated food waste and mixed organic waste. (Food waste in mixed organic waste containers must be bagged.) As of July 1, 2023, the tip fee at this facility is $91.23 per ton.
The Coachella Valley Compost (SWIS #33-AA-0292), Coachella, is the secondary facility for the delivery and diversion of source-separated food waste and mixed organic waste. (Food waste in mixed organic waste containers must be bagged.) Item Number: 16.
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As ofJuly 1, 2023, the tip fee at this facility is $91.23 per ton. (Note: Due to the extra distance and travel time, direct haul to Coachella Valley Compost for a period of more than thirty (30) days with the prospect that the usage will continue for 90-days or more may necessitate additional compensation.) E. METAL AND WHITE GOODS
SA Recycling (SWIS #33-AA-0297), Thousand Palms, is the primary facility for the delivery and diversion of metal and white goods.
As of July 1, 2023, the value paid by this facility is $9.19 per ton.
F. CONSTRUCTION AND DEMOLITION WASTE
Desert Recycling (SWIS #33-AA-0309), Thousand Palms, is the primary facility for the delivery and diversion of construction, demolition, and inert waste.
As of July 1, 2023, the tip fees at this facility vary by material type and market price.
Chandler Garnet LLC (SWIS #33-AA-0383), Palm Springs, is a primary facility for the delivery and diversion of construction, demolition, and inert waste.
As of July 1, 2023, the tip fees at this facility vary by material type and market price.
G. TRASH CARTS
Go Green Industries, Inc., Riverside, is the primary facility for recycling Low Density Polyethylene waste carts at their end of life.
As of July 1, 2023, the value paid at this facility is $180.00 per ton.
H. ELECTRONIC WASTE
Desert Arc (CEW #114349), Palm Desert, is the primary facility for the delivery of electronic waste for recycling.
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As of July 1, 2023, there is no Tip Fee at this facility.
I. USED AUTO/LIGHT TRUCK TIRES
Scrap Tire Services, Bermuda Dunes, is the transporter of used tires which are processed by B&J Used Tire & Rubber, Inc., Pasadena and Mitsubishi Cement Corp., Lucerne Valley.
As of July 1, 2023, the fee for these facilities is $184.26 per ton.
End of Attachment.
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ATTACHMENT I. SCHEDULE OF MAXIMUM RATES EFFECTIVE
JULY 1, 2024
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City of Desert Hot Springs
EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2024
Current Rate
7/1/23
Proposed Rate
7/1/24
Current Rate
7/1/23
Proposed Rate
7/1/24
Cart services (an organic service is also required)
Residential dwelling service: (1,2,3,4,6,7) 2-cart service (refuse & recycling, 95-gallon each) (9) $ 56.00 58.22 $ 3-cart bundle 41.09 $ 43.24 $ Bin services (an organic service is also required) (9,10)Extra carts: Refuse bin service: (11) Each add'l cart (refuse) 19.76 $ 20.80 $ 2-CY refuse bin service:Each add'l cart (recycling) 19.76 $ 20.80 $ 1st weekly pickup $ 219.74 228.44 $ Each add'l cart (organic waste) 19.76 $ 20.80 $ Each add'l weekly pickup 180.07 $ 187.20 $ Optional green waste cart (5) 4.95 $ 4.95 $ One-time pickup, 1st bin 86.49 $ 89.92 $ One-time extra pick-up of any cart 26.44 $ 27.83 $ One-time pickup, each add'l bin 44.41 $ 46.17 $ Billing fee (4) 14.28 $ 15.03 $ 3-CY refuse bin service:
Multi-family dwelling service (3-cart bundle): (6,7) First weekly pickup 295.88 $ 307.60 $ First dwelling unit on account 41.06 $ 43.21 $ Each add'l weekly pickup 249.01 $ 258.87 $ Each add'l dwelling unit on same account 40.87 $ 43.01 $ One-time pickup, 1st bin 96.88 $ 100.72 $ Extra carts: One-time pickup, each add'l bin 52.92 $ 55.02 $ Each extra refuse cart 19.76 $ 20.80 $ 4-CY refuse bin service:Each extra recycling cart 19.76 $ 20.80 $ First weekly pickup 358.01 $ 372.19 $ Each extra organic cart 19.76 $ 20.80 $ Each add'l weekly pickup 306.81 $ 318.96 $ Contaminated cart fees: (4,8) One-time pickup, 1st bin 122.88 $ 127.75 $ Disposal of recycling cart contents (per event) 26.44 $ 27.83 $ One-time pickup, each add'l bin 65.65 $ 68.25 $ Disposal of organic cart contents (per event) 26.44 $ 27.83 $ Removal of noncompliant cart (per event) 26.44 $ 27.83 $ Recycling bin service:Redelivery of removed cart (per event) 26.44 $ 27.83 $ 3-CY recycle bin: (11) First weekly pickup (per account) FREE FREESecond bin weekly pickup 268.45 $ 279.08 $ Each add'l weekly pickup 226.85 $ 235.83 $ One-time pickup, 1st bin 80.30 $ 83.48 $ One-time pickup, each add'l bin 80.30 $ 83.48 $ Service Service
Rates are monthly unless otherwise noted. Footnotes appear at end of schedule. COMMERCIAL SERVICES (3,7,9)
RESIDENTIAL SERVICES
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City of Desert Hot Springs
EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2024
Current Rate
7/1/23
Proposed Rate
7/1/24
Current Rate
7/1/23
Proposed Rate
7/1/24
Organic waste cart & bin services: (9,12) Food waste service, continued Green waste: 2-CY bin:
35-gallon cart: Each cart 314.25 $ 326.69 $
Each cart 27.00 $ 28.07 $ One-time pickup, 1st bin 80.30 $ 83.48 $ One-time pickup, 1st cart 26.77 $ 27.83 $ One-time pickup, each add'l bin with 1st 72.58 $ 75.45 $ One-time pickup, each add'l cart with 1st 6.23 $ 6.48 $ Mixed organic waste:
65-gallon cart: 35-gallon cart:
Each cart 34.73 $ 36.11 $ Each cart 34.28 $ 35.64 $ One-time pickup, 1st cart 26.77 $ 27.83 $ One-time pickup, 1st cart 26.77 $ 27.83 $ One-time pickup, each add'l cart with 1st 8.02 $ 8.34 $ One-time pickup, each add'l cart with 1st 7.91 $ 8.22 $ 95-gallon cart: 65-gallon cart:
Each cart 42.46 $ 44.14 $ Each cart 48.24 $ 50.15 $ One-time pickup, 1st cart 26.77 $ 27.83 $ One-time pickup, 1st cart 26.77 $ 27.83 $ One-time pickup, each add'l cart with 1st 9.81 $ 10.20 $ One-time pickup, each add'l cart with 1st 11.14 $ 11.58 $ 2-CY bin: 95-gallon cart:
Each cart 241.85 $ 251.43 $ Each cart 62.21 $ 64.67 $ One-time pickup, 1st bin 80.30 $ 83.48 $ One-time pickup, 1st cart 26.77 $ 27.83 $ One-time pickup, each add'l bin with 1st 55.85 $ 58.06 $ One-time pickup, each add'l cart with 1st 14.37 $ 14.94 $ 3-CY bin; 2-CY bin:
Each cart 326.95 $ 339.90 $ Each cart 283.84 $ 295.08 $ One-time pickup, 1st bin 80.30 $ 83.48 $ One-time pickup, 1st bin 80.30 $ 83.48 $ One-time pickup, each add'l bin with 1st 75.51 $ 78.50 $ One-time pickup, each add'l bin with 1st 65.55 $ 68.15 $ Food waste: 3-CY bin:
35-gallon cart: Each cart 389.94 $ 405.38 $
Each cart 41.05 $ 42.68 $ One-time pickup, 1st bin 90.06 $ 93.63 $ One-time pickup, 1st cart 26.77 $ 27.83 $ One-time pickup, each add'l bin with 1st 90.06 $ 93.63 $ One-time pickup, each add'l cart with 1st 6.23 $ 6.48 $ 65-gallon cart: Cannabis waste documentation fee: (13)
Each cart 60.83 $ 63.24 $ Will call collections 44.26 $ 46.01 $ One-time pickup, 1st cart 26.77 $ 27.83 $ Monthly charge for each weekly collection 191.79 $ 199.38 $ One-time pickup, each add'l cart with 1st 14.05 $ 14.61 $ Service Service
COMMERCIAL SERVICES, continued COMMERCIAL SERVICES, continued Desert Valley Disposal, Inc.
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City of Desert Hot Springs
EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2024
Current Rate
7/1/23
Proposed Rate
7/1/24
Current Rate
7/1/23
Proposed Rate
7/1/24
Contaminated cart fees: (8) Tonnage-based charges:
Each recycle or organic cart disposed (per event) 26.77 $ 27.83 $ Disposed tons:Removal of non-compliant cart (per event) 26.77 $ 27.83 $ Minimum charges (per load):Redelivery of removed cart (per event) $ 26.77 27.83 $ 10-CY, 8-tons 889.01 $ 914.61 $ Contaminated bin fees: (8) 20-CY, 3-tons 266.70 $ 274.38 $ Each recycle or organic bin disposed (per event) $ 89.21 92.74 $ 30-CY, 4-tons 355.61 $ 365.85 $ Removal of non-compliant bin (per event) $ 103.16 107.25 $ 40-CY, 5-tons 444.51 $ 457.31 $ Return of removed bin (per event) $ 86.00 89.41 $ Charge per ton in excess of minimum charge 88.90 $ 91.46 $ Diverted tons: (14)
Enforcement Inspections (per hour; on City order) 147.95 $ 153.81 $ (a) Facility tip fee Actual T.F. Actual T.F. Misc. Commercial Services: (b) SB 1383 1.89% of actual 1.89% of actual Return trips for inaccessible bins 86.00 $ 89.41 $ (c) Admin fee 15% of actual 15% of actual Bin relocation: (d) Diversion reporting (per ton) 14.62 $ 15.04 $ First bin (per request) 86.00 $ 89.41 $ (e) City Fee (per ton) 11.41 $ 11.74 $ Each add'l bin (per request) 34.26 $ 35.62 $ Miscellaneous debris box charges:
Roll-out charges (per month for each wkly p/u) 121.64 $ 126.46 $ Return trip, relocate, exchange box (15) 84.88 $ 87.32 $ Locking bin charges: Offloading > 10-tons (per 15-min, 1 hr min) 176.28 $ 181.36 $ One-time set up charge per bin 138.94 $ 144.44 $ Clean & wash box:Monthly charge per bin 138.94 $ 144.44 $ 1st box (per request) 142.47 $ 146.57 $ Contractor lock (1-time charge) 40.40 $ 42.00 $ Each add'l box (per request) 61.09 $ 62.85 $ Clean & wash bins by request: Stationary Compactor Services (pull charges + tonnage-based fees per load) First bin (per request) 138.94 $ 144.44 $ Pull charges for pickup & return (per load):Each add'l bin (per request) 59.56 $ 61.92 $ Loads to EHTS for disposal & diversion 542.60 $ 558.23 $ Special equip or handling (per mo for each wkly p/u) 85.97 $ 89.37 $ Tonnage-based fees (per ton):Domestic animal waste (charged for each 3-CY bin pickup) 305.52 $ 317.62 $ Disposed tons 88.90 $ 91.46 $ Add for hard-to-handle waste (per ton) 20.98 $ 21.58 $
Diverted tons: (14)
Debris Box Services (pull charges + tonnage-based fees per load) (a) Facility tip fee Actual Actual Pull charges: (b) SB 1383 1.89% of actual 1.89% of actual Loads to EHTS for disposal & diversion 542.60 $ 558.23 $ (c) Admin fee 15% of actual 15% of actual Loads to other facilities 634.82 $ 653.10 $ (d) Diversion reporting (per ton) 14.62 $ 15.04 $ Rental charges (per day after 7-days no activity) 77.51 $ 79.74 $ (e) City Fee (per ton) 11.41 $ 11.74 $ COMMERCIAL SERVICES, continued ROLL-OFF SERVICES, continued
ROLL-OFF SERVICES
Service Service
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City of Desert Hot Springs
EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2024
Current Rate
7/1/23
Proposed Rate
7/1/24
Current Rate
7/1/23
Proposed Rate
7/1/24
Miscellaneous stationary compactor charges: Miscellaneous charges, continued Return trip, relocate, or turn around (15) 84.88 $ 87.32 $ Miscellaneous Refuse & debris (hourly):Offloading > 10-tons (per 15-min, 1 hr min) 176.28 $ 181.36 $ First 15-minutes 38.09 $ 39.19 $ Clean & wash box: Each add'l 15 minute increment 11.09 $ 11.41 $ 1st box (per request) 142.47 $ 146.57 $ Cleanup Services (including disaster debris):Each add'l box (per request) 61.09 $ 62.85 $ Labor (per hour):
Monthly maintenance service 115.66 $ 118.99 $ Debris abatement crew (with vehicle) 112.21 $ 115.44 $ Specialized equipment or handling (per load) 149.07 $ 153.36 $ Field supervisor 56.14 $ 57.76 $ Driver, roll-off truck 51.75 $ 53.24 $
Special Bin Services Driver, front & rear loader collection vehicle 46.13 $ 47.46 $ Disposal services: Driver, bin delivery truck 46.13 $ 47.46 $ Temporary residential clean-up bin: Laborer 29.78 $ 30.64 $ 4-day rental 153.39 $ 157.81 $ Equipment (per hour):Extra pick-up 102.35 $ 105.30 $ Roll-off truck 79.52 $ 81.81 $ Construction bin: Debris box 77.51 $ 79.74 $
7-day rental 177.79 $ 182.91 $ Rear loading collection vehicle 79.52 $ 81.81 $ Extra pick-up 102.35 $ 105.30 $ Commercial front loader collection vehicle 81.62 $ 83.97 $ Monthly service 416.16 $ 428.15 $ 3-CY construction bin 25.39 $ 26.12 $ Extra pick-up 114.65 $ 117.95 $ Bin delivery truck 18.57 $ 19.10 $ Special Bin Services, continued Pick-up truck 16.10 $ 16.56 $ Diversion services: Rented equipment Actual + 10% Actual + 10% Preferred Hauler Program (3-CY bin): Disposal or diversion tip fee Actual + 10% Actual + 10% 7-day rental 205.39 $ 211.31 $ Materials & contracted services Actual + 10% Actual + 10% Extra pick-up 205.39 $ 211.31 $ Remove litter from enclosure (per hour) 121.40 $ 124.90 $ Monthly service 821.58 $ 845.24 $ Enclosure cleaning:
Extra weekly pick-up 821.58 $ 845.24 $ Basic service (remove debris & sweep; per sq.ft.) 3.37 $ 3.47 $ Special Haul/Bulky Item Services Power wash (after basic service; per sq.ft.) 6.90 $ 7.10 $ Residential: Administrative Charges (applicable to all accounts):
2 Items per month (combo, appliance or other) FREE FREE Charge for returned check/electronic payment 25.00 $ 25.00 $ Each add'l appliance 46.35 $ 48.78 $ Past due charge 1 1/2% 1 1/2%Each add'l other bulky item 23.16 $ 24.37 $ Delinquent account charge (of amt delinquent) 10% 10% Commercial (including MFD using bins): City admin cost to process tax liens (16) Pro rata share Pro rata share Each appliance 86.82 $ 90.26 $ City admin cost to process tax levies (17) Pro rata share Pro rata shareEach other bulky item 34.71 $ 36.08 $ Service Service
ROLL-OFF SERVICES, continued MISCELLANEOUS SERVICE, continued
MISCELLANEOUS SERVICES
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City of Desert Hot Springs
EXHIBIT A
Franchise Agreement Attachment I
Schedule of Maximum Rates Effective July 1, 2024
(15) Return trip to service inaccessible box/compactor or relocate at customer's request. (b) Required for Non-food establishments: (a) green waste service, OR (b) mixed organic waste service as applicable.(c) Required for Multi-family complexes: mixed organic waste service ONLY (or with separate green waste and food waste containers by special arrangement with Contractor.(d) Required for Cannabis establishments: green waste service for cannabis waste AND other organic service as applicable. (7) Service billed monthly in arrears; deposit and/or advance payment may be required of delinquent accounts. (16) City's administrative charge to collect delinquent waste charges on the County tax bill; allocated among the accounts eligible to be collected in this manner as a lien against the property. (8) After written notice to customer posted on cart. (9) Organic waste recycling required for all commercial services. Organic wastes (green waste, food waste & mixed organic waste) are to be source-separated and free of contamination; mixed organic waste containers may include bagged food waste. Available organic waste services for specific generators:
(17) City's administrative cost to levy an assessment for solid waste fees on eligible properties; allocated equally among eligible single family properties placed on County property tax bill. (a) Required for Food establishments: (a) Food waste service, AND (b) green waste service, if applicable. (4) Detached single family service billed on County property tax bill. Any services direct billed by Contractor are subject to a billing fee for each quarterly billing. (12) Source-separated green waste, food waste or mixed organic waste free of non-compliant waste; requirements strictly enforced. (5) Existing optional green waste cart service replaced by organic waste cart service effective 10/1/22. (13) The disposal of cannabis waste is regulated by the State of California. State regulations allow collection of cannabis waste with other green waste if processed at a permitted green waste facility. The cannabis waste documentation fee covers the hauler's record keeping cost. Documentation fee applies to each collection visit regardless of the number of containers collected at the visit. (6) Service category applies to dwelling units: (a) with common walls such as duplexes, triplexes, condominiums, townhomes, apartments, hotel & motel units; also applies to mobile home park dwellings; (b) serviced individually, and (c) receiving one bill for all units on account. Also applies to mobile home park dwellings receiving individual pick-up and a master bill to a single account. All other units billed as Single Family dwellings. (14) For tons delivered to a solid waste facility for diversion. Fee per ton is the sum total of listed fees (a) thru (e).(1) 3-cart bundle is the default residential service and includes one 95-gallon cart each for sourceseparated refuse, recycling & organic waste provided by Contractor; bagged food waste permitted in organic cart. Dwellings not billed via the County property tax bill will be billed directly by Contractor, quarterly in advance. (10) Bins cleaned or exchanged once annually at no charge upon request.(11) For each 2-, 3- or 4-CY bin subscription, regardless of the number of weekly pick-ups, customer receives one 3CY recycle bin collected once weekly. Additional recycle bins or weekly recycling bin pickups available for additional fees. Customer may substitute a 2CY bin, however no price difference for substitutions. (2) Single family rate applies to dwellings in mobile home parks that are direct billed individually by Contractor. Examples: (a) One 3CY recycle bin provided for subscription of one 2CY refuse bin collected 1xWeek; (b) One 3CY recycle bin provided for subscription of one 3CY bin collected 6xWeek; (c) Two 3CY recycle bins provided for subscription of two 4CY refuse bins collected 2xWeek. (3) Containers (carts & bins) must be no more than level full with lids closed. C&D waste and animal waste prohibited, except for animal waste for household pets.
FOOTNOTES FOOTNOTES, continued
Desert Valley Disposal, Inc.
Item Number: 16.